Steinhoff proceeding with Pepco IPO


Steinhoff proceeding with Pepco IPO


Published Date: 2021-04-28 | Source: Stephen Gunnion | Author: Stephen Gunnion

Steinhoff proceeding with Pepco IPO

The embattled retail group will list its European subsidiary on the Warsaw Stock Exchange, releasing at least 15 percent of its shares.

Steinhoff is going ahead with the listing of its Pepco Group subsidiary after receiving the consent of its creditors for the move. In line with current market practice it says it will place at least 15% of its shares in the discount retail group on the Warsaw Stock Exchange.

The initial public offering of Pepco shares will allow it to repay expensive debt as it battles to return its business to sustainability following accounting irregularities uncovered in 2017 that nearly brought it to its knees.

Pepco, previously called Pepkor Europe, is a pan-European discount variety retailer. It claims to serve over 50 million customers a month from its more than 3,200 stores in 16 countries across Europe. It owns the PEPCO and Dealz brands in Europe and the Poundland brand in the UK and claims to serve over . It is one of the biggest contributors to Steinhoff's earnings.

Steinhoff said the IPO would be made to institutional and retail investors, including a public offering in Poland. It chose Warsaw for the listing as it's been the home to the PEPCO brand since 2004 and Poland is the group's biggest market.

Independent retail analyst Syd Vianello said a listing would enable values to be placed on all Steinhoff's major assets.

Steinhoff's shares closed 1.5% higher at R2.09 on Monday.


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