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TheWorks.co.uk to be valued at £100mln when it joins the LSE next week

The Works is raising £65.2mln from the IPO, with £36.7mln going to the selling shareholders, including private equity group Endless, and the remaining £28.5mln being used to repay debt
theworks.co.uk store in brighton
Unlike most retailers, The Works is pouring money into new store openings

Discount gift and toys retailer TheWorks.co.uk PLC is to be valued at £100mln when it joins the London Stock Exchange next week.

The high street chain, which sells cheap toys, books and stationery among other things, priced shares at 160p ahead of then July 19 float.

The initial public offering (IPO) will give private equity group Endless a chance to realise a return on its investment, having bought The Works back in 2008, since when the store estate has more than doubled to 447.

New store openings

Endless, along with the other selling shareholders including management, will net £36.7mln from the placing, although they will still retain a combined 24.9% stake in the business.

The remaining £28.5mln raised from the IPO will be used by The Works to pay down some of its debt.

The company’s move to go public comes at a time when most bricks-and-mortar retailers are struggling as shoppers tighten their belts amid a squeeze on household inflation and those that remain shop do more and more of their shopping online.

But The Works has poured millions into new store opening over the past couple of years and estimates that more than 90% of its sales come from its shops.

‘Exciting new chapter’

“Today represents a significant milestone for The Works and we're extremely pleased with the level of interest we've received from investors in our business,” said chief executive Kevin Keaney.

“They've seen what our customers see every day - a unique and exciting retail experience that combines value, quality and variety that's available online and in-store.

“With a highly experienced management team, energised staff and compelling offer, we are well-positioned for further growth.

He added: “We're grateful to our exiting shareholders Endless, whose support has enabled us to get here today and look forward to welcoming new shareholders to join us in this exciting new chapter for the business.”

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