l trading of Poundland shares begun this morning, and Europe's biggest single-price retailer set the price of it's Initial Public Offering (IPO) at 300p a share.This price places Poundland shares at the very top of its initial price range, valuing the company at £750 million.
The company believe that the flotation will raise £375 million, and this would see private equity firm Warburg Pincus reduce its stake in the British retailer.
Investors didn't shy away from the top end listing, as Poundland's share price rallied 19% to trade as high as 358p within an hour of its first day as a public company, currently valuing the company at just under £900 million.
Daniel Latev, Head of Retailing at Euromonitor International said : "It is a very opportune time for Poundland listing. Pound shops have benefited enormously from the recession and the consumer shift to manage their budgets more tightly. Even now as consumer confidence has improved pound shops are still benefiting from this as consumers have integrated pound shops in their shopping routine. Shopping in pound stores does not carry the stigma it did few years ago."
