Pets at Home’s possible float next year is likely to generate strong interest from the City, according to analysts.
Last week the pets retailer revealed it had appointed JP Morgan Cazenove as it seeks to “examine the options for a potential IPO of the company in 2010, subject to market conditions”.
KBC Peel Hunt analyst John Stevenson said there is likely to be keen investor interest in Pets at Home, which has traded well through the recession.
He said: “If you can demonstrate you are a retailer with growth prospects, where the returns are good, there will be appetite for a float. Pets at Home is relatively early on in its journey and there aren’t many genuinely niche businesses that can prove they have a strong growth strategy.”
Pali International analyst Nick Bubb said: “Pets at Home still has huge physical expansion left in the UK.” He said any float should be “very positively received. It’s a fantastic growth story”.
Pets at Home chief executive Matt Davies said: “This appointment signals our wish to be prepared, should the IPO market begin to look attractive as one of the exit options open to us.”
JP Morgan Cazenove will act as joint sponsor, joint bookrunner and joint global co-ordinator.