Steinhoff's discount subsidiary Pepco hopes to raise up to R20 billion from IPO

Retailer Steinhoff says its "mum on a budget" pan-European subsidiary the Pepco Group hopes to raise between R17 billion and R20 billion from its upcoming initial public offering on the Warsaw stock exchange. 

Pepco has 3 200 stores across 16 European countries and includes retail brands such as PEPCO, Poundland, and Dealz

The IPO will include a public offering of up to 102 million existing Pepco Group shares, of which 98.8% are held by Steinhoff.

These shares represent  17.9% of the group's total issued share capital, according to Pepco. 

The retailer is hoping to raise between €1 billion and €1.2 billion (roughly R17 and R20 billion) from the initial offering. This would give it an implied equity value of  between €4.8 billion and €5.8 billion (between R80 billion and R100 billion).

The group's shares will likely start trading on the Warsaw stock exchange on May 26.

The initial offering will be marketed to retail and institutional investors in Poland, as well as and an "institutional investors in selected other countries".

“We have a proven track record of delivering growth and look forward to presenting our compelling investment case to both institutional investors, as well as retail investors in Poland,” said Pepco's CEO, Andy Bond.