Poundland owner lines up support for a stock market listing valued about £3bn

(qlmbusinessnews.com via news.sky.com– Tue, 7th Jan 2020) London, Uk – –

Steinhoff is hiring more banks to help list Pepco Group in London and Warsaw, Sky News understands.

The owner of Poundland is close to hiring advisers to support plans for a stock market listing that could value it at about £3.4bn.

Sky News understands that Steinhoff International Holdings, which owns Poundland's parent, Pepco Group, is expected to appoint a fresh slate of investment banks in the coming days to help prepare for an initial public offering (IPO).

An IPO is being considered by Steinhoff alongside an outright sale of the business, which comprises more than 2700 stores in the UK and more than ten countries in eastern Europe,

The company trades under the PEPCO brand in eastern European countries such as Poland, Croatia, Estonia and Latvia, and as Poundland in the UK.

Steinhoff is understood to be targeting a dual listing of the retail group in London and Warsaw, although a source close to the process insisted that no final decision had been made.

Goldman Sachs and JP Morgan were appointed to work on the potential flotation last autumn.

If it does decide to go public, it would mark a return to the equity markets for Poundland, which was taken private by Steinhoff in July 2016 in a deal worth just over £600m.

However, Steinhoff, a South African retail conglomerate, found itself mired in an accounting scandal little more than a year later, leading to its near-collapse.

It has since sold Harveys and Bensons for Beds, two other chains it owned, to Alteri Investors.

Details of Poundland's Christmas trading performance are not expected to be made public in a standalone trading update, according to a spokesman for Pepco.

Poundworld, one of its largest UK rivals, collapsed into administration in 2018.

Pepco declined to comment on the progress of its strategic options review.

By Mark Kleinman, City editor