Mccoll's Retail Share Discussion Threads

[philanderer] 27/2/2014 20:15

182p - 183p close .... 800k traded

[philanderer] 26/2/2014 20:30

"..Unlike convenience store business McColl's Retail Group , AO World , the latest retailer to float, surged on its debut to close up 93, or 32.6pc, at 378p. By contrast McColl's slipped on its first trading session a day earlier and dipped a further 1½ to 183p today."

Telegraph.

[philanderer] 26/2/2014 09:24

lqs, I can`t find any numbers just this from the FT last month..


"..Last year McColl's revenues rose 2.9 per cent to £869.4m. This helped operating profits jump 9 per cent to £23.3m. With growth far from explosive, the group instead plans to offer a healthy dividend yield – a tactic used by Bargain Booze owner Conviviality Retail in its successful float last summer."

According to most press reports they were hoping for a £225m valuation but the market looks happier with £190m.

I`m not convinced yet.

[lqs] 26/2/2014 07:18

whats the expected dividend here?

[philanderer] 25/2/2014 23:28

And not changing much for the rest of the day.


Daily Telegraph Market report:

'McColl's dips on stock market debut'

25th february


Shares in the convenience store group did not pop like other recent IPOs
Not every company enjoys the sort of stock market debut experienced by the likes of Royal Mail.

The recent revival of initial public offerings in London has been marked by some blistering performances from companies on their first day of trading. Royal Mail surged 37.9pc on its October debut drawing criticism the postal service was sold-off on the cheap by the Government and tech company Applied Graphene Materials jumped 39.4pc.

And while those companies might represent more extreme examples of the sort of price action investors might see at IPO, the expectation is for at least a modest premium on the first day of trade. Alton Towers owner Merlin Entertainments, for example, added a healthy 10.2pc when dealings began in November.

But not all floats enjoy this "pop" on their first trading day. Indeed, today's debut by convenience stores and newsagent business McColl's Retail Group acted as a reminder that some IPOs receive subdued receptions from investors.

Floated at 191p a share with a market cap of £200m, McColl's slipped to close down 6½ at 184½p, a fall that lowered the value of the stake held by management, who are locked up for a year after halving their holding in the group, leaving them with about 30pc. Private equity-controlled fund Cavendish Square Partners retained 5pc.

The dip raised questions about the IPO's pricing and whether or not the float was "dragged over the line", traders said, although those suggestions were refuted by Alex Ham, co-head of corporate broking at bookrunner Numis, who said the IPO was "comfortably over-subscribed".

McColl's debut was significant as it is the first of host of retailers due to come to the market in coming weeks. Among them are Poundland, white goods retailer AO.com and Pets at Home.

It will not have helped McColl's that its shares started trading on a weak day for the wider market.

[philanderer] 25/2/2014 23:27

On the watchlist, and a subdued start to dealings today.

Bloomberg:

Feb 25, 2014 9:15 AM GMT

McColl's Retail Group Plc shares fell from the initial public offering price in London as the stock market gave a muted reception to the U.K. operator of convenience stores and newsagents.

The shares traded at 184 pence as of 9:12 a.m., compared with the 191 pence offer price. That gave the company a market value of about 193 million pounds ($321 million). The FTSE 100 Index fell 0.5 percent.

McColl's is the first of several U.K. retailers to go public in London this year amid a recovering economy and improving consumer confidence. Discounter Poundland Group Plc, online appliances seller AO Plc and Pets at Home have all started an IPO process, with others set to follow.

"Maybe investors were more excited by the other retailing IPOs coming down the line?" Nick Bubb, an independent retailing analyst, said by e-mail today.

Shareholders including the retailer's executive directors and Cavendish Square Partners sold 83.1 million pounds of stock in the IPO after "strong" interest from investors, Brentwood, England-based McColl's said today in a statement. The operator of more than 1,200 shops also said it raised 49.7 million pounds by selling new shares to pay down debt.

The IPO "will enable us to accelerate our growth strategy, further enhancing our position in a rapidly growing convenience market," Chairman and Chief Executive Officer James Lancaster said in the statement.

The retailer is seeking to benefit from a shift in U.K. consumer habits away from big weekly trips to the supermarkets and toward more frequent visits to convenience stores. Convenience stores now account for about a fifth of the grocery industry and are growing at more than 5 percent a year, according to Institute of Grocery Distribution data.

Numis Securities acted for McColl's in the IPO, with Livingstone Partners LLP providing financial advice

[philanderer] 25/2/2014 23:25

McColl's, .............the UK's No.1 independent neighbourhood retailer.

"With over 1,200 stores conveniently located throughout England, Scotland and Wales. Trading under our shop names of McColl's, Martin's and RS McColl"



Conditional dealings start at 8am February 25 and unconditional trading will begin this Friday, February 28.