B&M Bargains has set its offer price at 270p which values the retailer at £2.7bn.
Buoyant early trading
In its first half day of conditional trading, the share price for the retailer has increased by over 6% to reach 288p. This market value means the company is worth more than the likes of Dixons and Ocado in relation to market capitalisation. It is expected the owners of B&M will make £1bn from the flotation, while £75m of new money will be raised by the company. Unconditional dealing is set to begin on Tuesday.
Right ownership model
Speaking in the trade press, B&M chief executive Simon Arora said "we are delighted that investors have demonstrated their support for B&M and its growth story in the value sector and they share our excitement about the future. We believe becoming a public company gives the business the right ownership model for the long-term which will allow us to move on to the next stage of our development."