The Star Late Edition

Steinhoff Internatio­nal’s Pepco listing values unit at R85 billion

Fast-growing group serves more than 50 million customers in 3 200 stores in 16 countries


STEINHOFF Internatio­nal said its subsidiary Pepco Group has set a price of €8.80 (R150.21) a share for its listing on the Warsaw Stock Exchange and values the company at €5 billion (R85.33bn).

Pepco Group, which owns brands such as Poundland, Pepco and Dealz, is a fast-growing pan-European discount variety retailer, serving more than 50 million customers in more than 3 200 stores in 16 countries.

The group expects to list and trade from May 26 on the Polish bourse.

Steinhoff has also decided to sell in connection with the initial public offering (IPO) of Pepco Group 102.27 million existing shares, excluding the over-allotment option.

Steinhoff said the number of shares that it was selling includes 23.11 million shares that have been sold by way of cornerston­e investment­s to certain lenders under the debt facilities entered into by it.

“In addition, Steinhoff has granted the stabilisat­ion manager, on behalf of the banks, an over-allotment option up to a maximum of 12.06 million existing shares,” Steinhoff said.

The IPO will reduce Steinhoff’s shareholdi­ng in Pepco Group to 78.9 percent, down from 98.8 percent, assuming a full exercise of an overallotm­ent option is taken.

Pepco Group chief executive Andy Bond said they were proud to be joining the Warsaw Stock Exchange in what will be its biggest IPO to date this year and to become one of the largest listed companies in Warsaw.

“Our group operates in the attractive European discount retail sector, and with our three market-leading brands – Pepco, Dealz and Poundland – we are extremely well positioned to take advantage of the enormous growth opportunit­ies in front of us,” Bond said.

The Pepco Group opted for the Warsaw listing, instead of listing in London, because of its exposure to the Polish market.

The offering was directed at retail and institutio­nal investors in Poland and the offer shares will also be offered to selected foreign institutio­nal investors, within or outside of the US.

The group said it was anticipate­d that retail investors would purchase 2.5 million sale shares, or 3.1 percent of the total number of sale shares included in the IPO, while institutio­nal investors will purchase 77.9 million of the sale shares included in the offering.

Bond said they were pleased to have received strong interest and support from a range of high-quality internatio­nal and Polish investors, including substantia­l retail demand, who had recognised the quality of their financial track record, and the substantia­l long-term store growth opportunit­y that they could readily finance through their internally generated cash-flow.

Pepco Group reported €3.5bn in revenue and earnings before interest, tax, depreciati­on and amortisati­on (Ebitda) of €229m, due to the impact of Covid-19 after some of its stores were closed to limit the spread of the pandemic in the year to September 2020. The group is aiming to grow its Ebitda to more than €1bn within five to seven years.

Steinhoff shares closed 4.64 percent higher on Friday at R2.03.

 ?? | Supplied ?? PEPCO GROUP, which owns brands such as Poundland, Pepco and Dealz, plans to list and trade from May 26 on the Warsaw stock exchange.
| Supplied PEPCO GROUP, which owns brands such as Poundland, Pepco and Dealz, plans to list and trade from May 26 on the Warsaw stock exchange.

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