Feb. 28 (Bloomberg) -- Pets at Home, a 369-store U.K. pets chain, will be valued at as much as 1.3 billion pounds ($2.2 billion) in an initial public offering as it becomes the latest in a line of retailers to join the London stock market.
Shares will be sold for 210 pence to 260 pence each, the company said today in a statement. The range implies a minimum valuation of 1.05 billion pounds. There is enough demand to sell all the shares offered in the base deal, two people familiar with the matter told Bloomberg News.
Pets at Home, majority-owned by private-equity company KKR & Co., is among retailers profiting from stronger economic growth, with U.K. consumer confidence at its highest since 2007. Poundland Group Plc’s IPO also had demand for all shares on the first day of its sale today, people familiar said.
Pets at Home will use offer proceeds of about 280 million pounds to cut debt. KKR and other investors may also sell shares in the IPO, according to the statement.
As much as 40 percent of the stock will be freely traded after the listing, the company said. At least 85 percent of the IPO shares will be offered to institutional investors, with members of the public and employees taking the remainder.
Pets at Home, which announced plans for an IPO on Feb. 19, expects conditional share dealings to start March 13.
“We are excited about the opportunities for Pets at Home as a listed business,” Chief Executive Officer Nick Wood said in the statement. “The listing will provide us with the right platform for the next stage of the group’s growth,” including increasing the number of stores to more than 500.
Russian hypermarket chain Lenta Ltd. made its trading debut in London today after an IPO that valued the company at $4.3 billion, while U.K. online clothing retailer Boohoo.com Plc said it expects its shares to be admitted to the Alternative Investment Market on March 14.
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