Poundland’s private equity owner, Warburg Pincus, will reduce its stake to just over 30pc of the shares. It is understood that Warburg made around 4.5 times its initial investment.
The retailer’s management, which includes chief executive Jim McCarthy and 154 other managers, will reduce its stake to 10pc from 24pc. Mr McCarthy stands to gain £1.9m from the sale of his shares in the IPO. Poundland’s founder, Steve Smith, sold his entire stake for £50m 10 years ago and now lives in a 13-bedroom mansion.
But, in a day of contrasting fortunes, Pets at Home, endured a shakier flotation debut. The retailer priced its shares at 245p each, valuing the company at £1.2bn, but they fell sharply before eventually closing 2.86pc down with a lacklustre price of 238p a share.
Pets at Home’s private equity owner, KKR, which bought the company for £995m four years ago, will be taking the bulk of £210m of proceeds from the £280m raised in the offer. It is reducing its stake to 46.2pc in the business, so the company has a free float of around 40pc, excluding an over-allotment option that could see a further 30m shares issued.
The pet retailer’s employees will share KKR’s payday, with store managers who invested £1,000 expected to receive five times as much as their investment from the IPO. Individual retailers and staff were also invited to participate in the offer.
Chief executive Nick Wood, who owns two Bichon Frise dogs and a hamster called Snuggles, delivered an upbeat assessment of his company’s debut, saying: “Colleagues, institutions and retail investors alike have recognised that this is a unique and differentiated business with multiple opportunities for future growth.”
He has reduced his stake from 6.45pc to 3.87pc in the IPO, putting him in line for a £4.5m windfall.
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