McColl's store

McColl’s initial public offering kicks off this week

McColl’s Retail Group will float with a start price of 191p, valuing the convenience and CTN giant at £200m.

McColl’s, which revealed plans to float last month, said the move was expected to raise £132.8m.

Conditional trading started at 8am this morning, with full trading to commence on Friday (28 February).

“We are delighted with the strong interest that we have seen from investors in McColl’s,” said chairman and CEO James Lancaster.

“The success of this initial public offering is a clear endorsement of the quality of the business and its clear prospects for future growth and profitability.

“It will enable us to accelerate our growth strategy, further enhancing our position in a rapidly growing convenience market.” 

He added: “We are pleased to welcome our new shareholders to the company and look forward to our next phase of development as a listed company.”

McColl’s is one of a number of retailers set to float this year. Earlier this month, Poundland revealed IPO plans that could value the discounter at around £750m. Russian supermarket chain Lenta has also launched an IPO.

In the wider retail sector, Pets at Home and AO.com have also announced their intention to float.

Read this: Will flotation help McColl’s hit its 1,000 c-store target?