Retail investors are able to buy shares in Pets at Home at the IPO (initial public offering) price. The pet food and accessories seller has announced plans to join the UK stockmarket and become a publicly-listed company. Retail investors need to apply via Barclays Stockbrokers or Hargreaves Lansdown to take part in the IPO, putting up at least £1,000. This link provides further details.
Pets at Home wants to raise £275 million to pay down its debts. Several existing shareholders including private equity group KKR and members of Pets at Home's management team are expected to sell down part of their holding at float, which is likely to take place next month. (Click on the image to enlarge).
The table shows the latest financial performance, illustrating decent profit margins. The retailer expects to report at least £110 million underlying EBITDA (earnings before interest, tax, depreciation and amortisation) in the financial year to 27 March 2014. The business is expected to be valued at £1.5 billion.
It continues to invest in better online systems to drive web sales, as well as open new stores. The pet care market in the UK is estimated to be worth more than £5.4 billion, growing at a 2.6% compound annual growth rate between 2008 and 2012. Pets at Home is the market leader with 369 stores versus 78 for its nearest specialist competitor.
Pets at Home isn't just a retailer. It has 246 in-store veterinary practices, making it the second largest player in the UK after CVS (CVSG:AIM) which has 259 practices.
The business will pay dividends, targeting 30% to 40% of its fully-taxed earnings. Former Asda chief executive officer Tony DeNunzio is the chairman. The CEO is Nick Wood who has previously worked for American Golf and Dixons Retail (DXNS).
If you are interested in other companies coming to the stockmarket, make sure you buy the new issue of Shares, out tomorrow (20 Feb) as we're running an IPO special. We'll go through all the companies confirmed or rumoured to be listing in the UK and show how to go through admission documents to spot the risks and rewards, together with our top picks for IPOs to back or avoid.