McColl’s Retail Group Plc Valued At £200m On Listing


Leading the charge in the most recent wave of initial public offerings, convenience-store chain McColl’s has announced that its offer price has been set at 191p per share, valuing the group’s market capitalisation at around £200m.

Management are hoping to raise close to £133m from the IPO, which saw conditional dealings begin this morning at 8am under the ticker (LSE: MCLS).

£49.7m is anticipated from the primary component, while £83.1m is expected from secondary sales as the likes of executive directors and others (such as employees from private equity firm Caird Capital, which co-owns the group) look to sell off their holdings.

The group is also aiming to extend its portfolio from 1,276 stores to around 1,350, through acquisitions, by the end of 2016.

Executive chairman and chief executive officer James Lancaster commented:

“We are delighted with the strong interest that we have seen from investors in McColl’s. The success of this initial public offering is a clear endorsement of the quality of the business and its clear prospects for future growth and profitability. It will enable us to accelerate our growth strategy, further enhancing our position in a rapidly growing convenience market.  

“We are pleased to welcome our new shareholders to the Company and look forward to our next phase of development as a listed company.”

It’s often best practice to wait until after a company floats, though, to buy in if you’re interested, in order to avoid the precipitous rises and falls that come with early buying and selling.

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> Sam does not own shares in any company mentioned.