Steinhoff to list discount variety retailer Pepco in Poland
Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here
X

Steinhoff to list Pepco in Poland

07 May 2021 (Last Updated May 7th, 2021 15:30)

South African retail company Steinhoff has announced that it will launch its pan-European discount variety retailer Pepco on the Warsaw Stock Exchange.

Steinhoff to list Pepco in Poland
Steinhoff operates Pepco in Eastern Europe and Poundland in Britain. Credit: House Buy Fast / Flickr.

The initial public offering (IPO) will include up to 101,343,568 existing Pepco shares, which represents up to 17.5% of Pepco’s total issued share capital.

The amount of offered shares may increase via an over-allotment option to sell an additional 15,407,767 shares.

The price range will be from €8.35 to €10.11, which implies an equity value of Pepco of €4.8bn to €5.8bn.

Steinhoff currently holds almost 98.8% of the shares put up for offer. The company is seeking to raise funds to repay debt.

The final offer price will be revealed on 14 May, with trading in Warsaw to begin on 26 May.

Pepco Group operates a network of more than 3,200 stores across 16 countries serving more than 50 million customers a month. It owns the Pepco and Dealz brands in Europe and the UK-based Poundland brand.

Pepco Group CEO Andy Bond said: “We operate in the highly attractive discount retail sector and remain confident about the significant growth opportunity we see for each of our much-loved retail brands.

“The group has a clear strategy to increase the number of Pepco and Dealz stores across the breadth of Europe by more than 8,000 over the longer term.

“We continue to invest in the business, which enables us to constantly improve our leading customer proposition, deliver the lowest prices to customers in each market and expand our infrastructure.

“To further enhance our profitability, we also have a clear focus on costs and delivering additional efficiencies as we grow.

“We have a proven track record of delivering growth and look forward to presenting our compelling investment case to both institutional investors, as well as retail investors in Poland.”

In December 2017, Steinhoff was at the centre of an accounting scandal.

An investigation by PwC revealed irregular or fake transactions recorded by the company between 2009 and 2017.

The incident saw the company’s share price decrease by more than half and its then-CEO Markus Jooste resign.