Convenience store and newsagent group McColl‘s confirmed its intention to float on the London Stock Exchange this morning.
The group, which operates 1,276 stores across the UK, expects the initial public offering (IPO) to be completed by the end of February. The news follows as retailers Poundland, Pets at Home and Fat Face are considering floats.
McColl‘s said it wants to raise £50m through the IPO which will be used to reduce its level of debt. It will also comprise a partial sale of its existing holding of Shares by Cavendish Square Partners.
The announcement comes as McColl‘s posted a 2.2 per cent year-on-year sales rise to £869.4m as profit rose to £211m.
Numis is acting as sponsor, financial adviser and bookrunner and Livingstone Partners is acting as financial adviser.
The UK convenience sector is forecast to grow from £35.6bn in 2013 to £46.2bn in 2018, faster than the overall growth of the UK grocery market.