14th Mar 2014 17:57
LONDON (Alliance News) - Newly listed discount retailer Poundland PLC said Friday that JP Morgan Securities PLC has opted to exercise its over-allotment option.
As a result of the exercise of the over-allotment, existing shareholders will sell a further 18.8 million shares in Poundland at its initial public offering price of 300 pence per share.
The stock has risen sharply in conditional dealings this week, closing at 375.926 pence Friday, down 3.1% on the day.
Poundland's IPO valued it at GBP750 million. Poundland, which is the largest of several discount retailers that are becoming omnipresent on the UK's high streets, has a key price point of GBP1 in its UK stores, or EUR1.49 in Ireland. It only opened its first store in 1990 and now has over 500 across the UK and Ireland.
The discount retailer said Wednesday it raised GBP375 million in the IPO, assuming no exercise of the over-allotment option, and GBP431 million assuming exercise in full of the over-allotment option, with the latter now confirmed. It wants to use the funds to finance its big expansion plans, believing it has the potential to have more than 1,000 stores in the UK alone in the longer term.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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