Poundland Group Plc has demand for all the shares it is selling in an initial public offering that will value the U.K. discount retailer at as much as 750 million pounds ($1.3 billion), according to terms of the deal.
The shares are being offered in a range of 250 pence to 300 pence, according to terms seen by Bloomberg News. Sellers including U.S. private-equity firm Warburg Pincus LLC could raise as much as 379.5 million pounds, including a 15 percent so-called over-allotment option, the terms show.
Poundland, which sells everything from groceries to plant pots from more than 500 stores in the U.K. and Ireland, joins retailers including Pets at Home in tapping investor appetite as economic growth improves. The FTSE 350 General Retailers Index has gained about 10 percent this year, more than double the gains of the FTSE 250 Index.
Poundland will have a market capitalization of 625 million pounds to 750 million pounds once it lists, according to the terms. The company expects to set a final IPO price on March 11.
With annual revenue of 881 million pounds in its last fiscal year, Poundland says it is Europe’s biggest single-price general-merchandise retailer. The company, which opened its first store in 1990, had earnings before interest, tax, depreciation and amortization, excluding some items, of 45.5 million pounds in the 2013 financial year.
JPMorgan Chase & Co., Credit Suisse Group AG (CSGN) are managing the sale along with Canaccord Genuity Group Inc. and Shore Capital Group Ltd., according to a Feb. 18 company filing.