By Charlie Conchie
LONDON (Reuters) -Princes Group made a subdued trading debut on Friday after the food producer priced its IPO at the lower end of a marketed range, in a sign of investor caution for one of London’s largest listings this year.
Princes’ shares rose 1% at the start of trading before reversing course and were down 1% by 1134 GMT.
The Liverpool-based owner of Napolina pasta and tinned tuna brand Princes raised around 420 million pounds in the share sale after pricing its shares at 475 pence each, valuing the company at 1.16 billion pounds ($1.56 billion).
The previously announced range was between 475 pence and 590 pence per share.
The IPO is among London’s biggest in recent years and comes amid signs of a revival in activity in the UK market, although performances have been mixed.
Alternative lender Shawbrook floated at a valuation of 1.9 billion pounds on Thursday, near the middle of its target price range, and its shares jumped nearly 7% on their first day.
In contrast, cosmetic tech firm Beauty Tech Group floated earlier this month and its shares have lost nearly 6% since listing, according to LSEG data.
Princes Group, which has become one of Europe’s biggest grocery suppliers in recent decades through nearly two dozen acquisitions and mergers, intends to use the proceeds of its IPO to finance further acquisitions, according to its prospectus. It is looking to deliver 1 billion to 1.5 billion pounds in incremental revenue growth through acquisitions over the medium term.
“The track record of the group speaks for itself,” Princes Group CEO Simon Harrison told Reuters in an interview. “There’ve been four major acquisitions in just over the last 12 months, and we believe that the opportunities are going to be coming thick and fast for us in the future as well.”
Princes was bought by Milan-listed Newlat Food in 2024 for 700 million pounds. Newlat subsequently changed its name to New Princes Group.
The Italian parent bought around 200 million pounds worth of shares in the deal while the family office of executive chair, Angelo Mastrolia, bought 54.7 million pounds worth of shares in the offer. New Princes will retain an 82.7% stake in the company after its IPO.
Last year Princes Group generated pro forma revenues of 2.1 billion pounds, according to accounts in its prospectus.
($1 = 0.7451 pounds)
(Reporting by Charlie Conchie, additional reporting by Yamini Kalia and Joice Alves; Editing by Anousha Sakoui and Susan Fenton)
