London vies for Poundland float after pandemic delay

Mar 31, 2021

The owner of Poundland is reviving plans for a multibillion pound flotation that could swell the ranks of listed retailers on the London stock market.

Sky News has learnt that Pepco Group, which trades from more than 3000 stores across 15 European markets, has begun holding preliminary talks with institutional investors about an initial public offering in the UK or Poland.

City sources said on Wednesday that London had re-emerged as a serious contender to stage the listing after Warsaw had previously become the likeliest destination for the company.

Steinhoff International Holdings, Pepco’s South Africa-based owner, said in January that it was re-examining a flotation of one of Europe’s biggest discount retailers.

In addition to Poundland, the group trades under the Pepco and Dealz brands and has said it expects post-pandemic economies to see greater demand for value-based chains.

Pepco Group is run by Andy Bond, the former Asda chief executive, and employs well over 30,000 people.

The first stores using the Pepco brand opened in Poland in 2004, and the country now has more than 1000 trading under the name.

It initially planned to go public last year, and insiders said a dual listing in London and Warsaw remained a potential outcome.

A private equity takeover is also a possibility, with significant interest having been expressed in the business last year by buyout firms including Advent International.

A Pepco spokesman said the company was “engaged in considering…options in more detail, including a potential public listing of Pepco Group in either London or Warsaw, although no definitive decision has been taken with respect to any specific course of action”.

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