Pets at Home is planning a London stock market debut that values Britain's biggest pet shop group at about 1.5 billion pounds ($2.5 billion), seeking to cash in on an improving outlook for consumer spending and the nation's love of pets. The firm, mainly owned by US private equity group KKR, said on Wednesday it was looking to raise about 275 million pounds from the sale of new shares, which will include an offer to retail investors, to pay down debt.
It also unveiled plans to more than double the number of its veterinary surgeries and in-store grooming salons in a bid to increase its approximate 12 percent share of Britain's 5.4 billion pounds-a-year pet care and retail market.
That market grew at a compound annual rate of 2.6 percent between 2008 and 2012, faster than the broader UK retail market and underscoring Britons attachment to their pets even during difficult economic times.
The flotation plan is one of a string expected in Britain's retail sector this year as the economy recovers from a long and deep recession. Newsagent and convenience store McColl's, online domestic appliances retailer AO and discount firm Poundland have all said they plan to list soon.
Fat Face, House of Fraser, Boohoo.com and B&M are also expected to come to market later this year.
"Pets at Home will be seen as an important test of investor appetite for private equity owned retailers, as it has been through a couple of owners in recent years, so the question is how much has been left in the tank by KKR?," said independent retail analyst Nick Bubb.
Founded in 1991, Pets at Home trades from 369 stores across the UK, 246 small animal veterinary surgeries and 116 in-store grooming salons. It employs about 6,000 staff, 93 percent of them pet owners.
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