Discount retail chain B&M is seeking a valuation of up to £2.9bn as it joins the faltering trail of companies planning to float on the stock market this year.
The Liverpool-based company is understood to have set the range for its initial public offering at between 230p and 290p a share. The range, which will be used to put a price on the company in discussions with City investors, values B&M at between £2.3bn and £2.9bn.
When B&M announced its intention to float last week it was said to be looking for a valuation of about £2.5bn. The £2.6bn midpoint of the range is said to indicate would-be shareholders' initial enthusiasm from for B&M's growth plans.
B&M has been joined by Australian fashion website MySale in raising money from investors. MySale, backed by
The retailers are pressing ahead with their IPOs as the market for flotations cools down from the frenzy in the first few months of the year. Fat Face pulled its float last week because fund managers rejected the £440m valuation placed on the casualwear store chain by its private equity owners.
Saga, the over-50s travel and insurance group also owned by buyout firms, was forced to price its IPO at the bottom of its intended range. Investors have become wary of lofty valuations demanded by private equity firms to cash in their investments, many made at the market peak before the financial crisis.
B&M is 60% owned by private equity outfit
If B&M is priced at the top of its IPO range, the Arora brothers would reap about £1.1bn and the company would hover just outside the
Other businesses preparing for IPOs include easyJet founder Sir
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