Shares at pet shop chain Pets at Home took a hit yesterday as private equity giant KKR sold £119m worth of stock.
The firm sold just under half of its stake, and still holds on to a 12.4 per cent stake in the retailer.
Pets at Home, which listed for £1.5bn in 2014, closed the day with its share price down 7.74 per cent at 199.2p apiece, making it the FTSE’s second biggest faller of the day.
The proceeds raised by KKR imply it sold its shares for 195p each. This is well below the debut price of 245p per share, and even further below the 267p at which KKR sold a chunk of its stake in 2015, generating around £288m.
Pets at Home has been dogged by problems including concerns about its debt and the strength of its board.
Analysts at Liberum downgraded its stock to a “sell” recommendation in 2016, and following Pets at Home’s capital markets day this June said that the company was struggling to stay ahead of the competition.
The brokerage recommended a rather brutal target price of 145p, saying the shares could be a “value trap”.