Poundland Shares

alansmith7

Hi All

I have been reading about poundland are planning to float on the london stock exchange, I wanted to know if anyone was planning to buy shares in poundland?


http://www.bbc.co.uk/news/business-26238027


Thanks

ss53

If their float price is not a pound it will be a travesty.

alansmith7

ss53 wrote: »

If their float price is not a pound it will be a travesty.

i doubt their float price will be a pound, i think it be around £3 per share maybe.. as you might tell im not a expert on shares

PeacefulWaters

They have a rename and a rebrand lined up to drive up revenue.

Their new name ...

... "The £1.25 shop".

grizzly1911

Who majority owns it now?

Why do you think they want to sell?

What value haven't they extracted?

When they started originally it was a bright new concept. There is much more competition now.

Last time I was in one they weren't particularly cheap, their USP, compared to other retailers several random products being more expensive.

Glen_Clark

Their business model is cutting out the middleman, going directly to China to source cheap goods. Most of their success can be attributed to their very shrewd buying department.
But now their competitors are big enough to have experienced buyers on the ground in China too. And Costs in China are rising.
If I owned Poundland, I would be looking to sell it on its current high too.

WatsonNimrod

Read today that the IPO is only being offered to institutional investors.

I am sure there will be a lot of froth around the IPO but long term you have to wonder, as many have pointed out, it's not as if they can put their prices up!

grey_gym_sock

WatsonNimrod wrote: »

it's not as if they can put their prices up!

but perhaps they can cut the quality ... http://simple-living-in-suffolk.co.uk/2013/11/poundland-are-cynical-con-artists/

planteria

...or more likely reduce pack sizes.

i know the people who set it up, and it has been an impressive business. as buyers they have a very refreshing approach. and yes, they source direct from factories on generic lines, but have a focus on branded ranges too, and big multinationals have been producing pack sizes just for them, to hit their price point.

the business is currently owned by Warburg Pincus, the private equity house. they were always going to be looking to exit at a profit. whether the shares will IPO at a price that represents 'good value', i don't know. but it's an interesting business, imo.

theGrinch

the current owners are well versed in extracting max value. its not a share or a shop that tickles my fancy

Popz

Anyone know if the AO.com ipo was open to private investors? It shot up 40% in unconditional trading today...