PRG plans IPO in bid to boost PowerHouse

New Zealand-based Pacific Retail Group (PRG) is launching an IPO of its southern hemisphere retail businesses to support development of UK electricals chain PowerHouse.

PowerHouse, which has 134 stores, was bought out of administration last September. PRG acting chief executive Steve Smith said it is 'on track' to achieve profitability.

The IPO in New Zealand, planned for late June, will allow PRG to improve PowerHouse, which occupies the number three slot in the UK market. Cash will also be invested in Pacific Retail Finance and lingerie arm Bendon, which includes the Elle Macpherson Intimates lingerie brand.

Smith said the brands being floated account for 60 per cent of profit - which totalled NZ$18.2 million (£6.2 million) last year - but are mature businesses. 'PRG wants a portfolio of investments in various stages of the value cycle, in order to derive ongoing value-add for shareholders,' he said.