Pets at Home’s private equity owner KKR could make more than £200m as a result of the specialist retailer’s stock market listing.
And investment bankers running the process could collect £40m in fees.
According to the retailer’s prospectus, if there is strong demand for shares in Pets at Home £209m will be returned to existing shareholders.
KKR owns about 85% of the Pets at Home. The management team, who also have a stake, could take home cash and share payments worth more than £20m.
KKR’s payout could rise because it may release more shares if the offer is oversubscribed. KKR would continue to hold a minority stake worth hundreds of millions, according to the Guardian.
Pets at Home was valued at between £1.05bn and £1.3bn on Friday after it said its shares would be priced at between 210p and 260p each.
If there are buyers at the top end of that price band, Pets at Home chief executive Nick Wood intends to sell shares worth £4.8m while retaining a 1.1% stake worth £14.3m. Chairman Tony DeNunzio will realise a £2.8m holding and finance director Ian Kellett, its finance director will collect £3.6m.
Sally Hopson, customer and people director, stands to make £2.9m while commercial director Peter Pritchard will get £2.8m and Phil Hackney, logistics director, will get £1.8m.
The prospectus also discloses that advisers including Bank of America Merrill Lynch, Goldman Sachs and Nomura, will earn £40m for their work on the IPO.
Pets at Home will use the proceeds from the IPO to reduce its debt. Part of the £351m it intends to raise will be used to repay a bank syndicate. Goldman Sachs will receive an estimated £50m while Bank of America Merrill Lynch and Nomura will each receive around £5m.
The price of the shares will be set on March 13 and uconditional trading is due to start the following week.