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The Fragrance Shop is considering a stock market float: Sky News
Posted on Friday, 09 March 2018 12:07
UK-based perfume retailer the Fragrance Shop is preparing for an initial public offering (IPO) as high-street retailers continue to struggle amid the increasing shift to online shopping, Sky News reported.
The broadcaster, which did not cite its sources, noted a listing could fetch around GBP 200.00 million, although, if the company decides to go ahead with the flotation, it would likely take place in 2019.
Owned by Manchester-based entrepreneur Sanjay Vadera, the Fragrance Shop is billed as the UK’s largest independent perfumer and has already reportedly mandated Rothschild to work on plans.
Sky News said city advisors are expected to pitch for the IPO in the coming weeks, with the company’s controlling shareholder yet to make a formal decision on any form of corporate action.
The move comes during one of the most brutal times for UK high-street retailers, the broadcaster added, with multiple brands filing for bankruptcy, including Maplin and Toys R Us.
In addition, Carpetright, House of Fraser and Mothercare are under pressure, according to Sky News.
Sky News observed a spokesperson for the Fragrance Shop said following strong year-on-year growth and positive trading figures over Christmas “the business is exploring a number of strategic expansion opportunities”.
He added that a review would help the company expand its market success and continue to produce strong results within a challenging industry.
The Fragrance Shop posted a 5.6 per cent increase in sales in the six weeks to 31st December 2017, the broadcaster noted, adding this bucks the trend of most retailers in the country.
Founded in 1994, the business had over 130 fragrance brands, including Chanel, Tom Ford, Gucci and Mugler, among others, and sells from over 200 stores, an online e-commerce platform and telephone sales.
Zephyr, the M&A database published by Bureau van Dijk, shows that just one other health and personal care store operator worldwide has announced an IPO in 2018 to date.
This deal involved Cayman Islands-incorporated beauty and health products retail stores group Mi Ming Mart, which raised HKD 75.60 million (GBP 6.96 million) through a listing on the Hong Kong Stock Exchange.
© Zephus Ltd