Retailer DFS Furniture Gets Maximum $1 Billion Valuation in IPOPaul Jarvis
DFS Furniture Ltd. will be valued at as much as about 654 million pounds ($1 billion) when the U.K. sofa retailer returns to the London stock market for the first time in more than a decade.
The company, owned by private-equity firm, Advent International Corp., will offer shares at a price of 245 pence to 310 pence apiece, it said in a statement Monday. At the mid-point of the range, DFS will be valued at 585 million pounds, according to the statement.
DFS is the latest retailer seeking to sell shares in the U.K., on the heels of a year when companies raised about $6 billion from London IPOs, the most in over a decade, data compiled by Bloomberg show. Smaller competitor ScS Group Plc returned to the stock market in January with a listing that valued the company at 70 million pounds.
DFS’s IPO will raise about 98 million pounds for the company, which will be used to reduce debt and provide access to cheaper financing. Funds managed by Advent will also sell some shares. Including a possible over-allotment option, the maximum size of the offer is 296 million pounds, DFS said.
DFS says it is leader of the 3 billion-pound U.K. upholstery market with a 26 percent share. Founded by Graham Kirkham in 1969, the retailer was acquired by Advent in 2010. Prior to that, it spent more than 10 years as a listed company before being taken private by Kirkham in a 2004 deal that valued the company at 507 million pounds.