Poundland picks banks for flotation

 
Kasmira Jefford
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POUNDLAND has hired two banks to oversee its upcoming initial public offering that is expected to value the bargain chain by more than £800m.

The private-equity owned group is close to hiring Credit Suisse and JP Morgan to lead the flotation and is due to formally announce the appointments in the next few days, a source confirmed yesterday.

Poundland is 76 per cent owned by private equity group Warburg Pincus which bought the chain for £200m three years ago. Its management, led by chief executive Jim McCarthy, own the remaining stake.

The chain, which has benefitted from thrifty shoppers seeking value during the economic downturn, posted record sales in the year to March of £880m.

It has ambitions to more than double the number of UK shops to 1,000 over the next decade and plans to move into mainland Europe – a growth story that potential investors will be keen to tap into.

Credit Suisse and JP Morgan will be acting as bookrunners on the float, while Rothschild has been advising the group on its options.