IPO Pets At Home

BlueTree

MABLE wrote: »

BlueTree, You need to check your figures.

Pets at Home, which has 371 stores, made a pre-tax profit of £41.3m on sales of £515.1m in the 40 weeks to 2 January, according to the report, with like-for-like sales up 2.4%. The price of the shares will be set on 13 March with trading due to start the following week.

Last complete audited financial year shows a post tax profit of 21.7 million. You are looking at a 40-week unaudited period, pre tax..

BlueTree

Also worth comparing to US market leader PetsSmart, on the US stock market - making a profit of over £200million, but has market cap of about £4 billion. So why is Pets At Home valued (by a private equity company) at £1.3billion on much less profit?? (10 x less profit).

bigadaj

If it's private equity then there may well be some scary debt levels associated with the company.

planteria

the level of debt will be made clear, surely?

BlueTree

On Admission, the Company will draw down £325 million of term debt under
the New Senior Facilities Agreement.

The Company intends to use £239.7 million of the net proceeds it receives from the Share Offer, together with £325 million drawn down under the New Senior Facilities Agreement and approximately £3.2 million of the Company’s cash, to facilitate repayment of all amounts outstanding under the Existing Senior Facilities Agreement.

jayship

The offer closes 11 March 5pm. Quite a few brokers are offering this IPO. HL, TD and Beaufort Securities among many others. Ring your platform or broker to find out.