Sofa retailer DFS returns to the London market

6th Mar 2015 08:51

British furniture retailer DFS has returned to the London stock market after more than a decade, pricing its shares at 255p.The sofa seller, known for its seasonal bargains, priced its shares 10p above the bottom end of its previous pre-set range between 245p-310p.The range was narrowed to 255p to 265p before the final price was set on Thursday night. Friday's debut on the market sees the company valuation up to near the £585m mark.This however was disappointing to those looking to pick up the stock as before the prospectus of the IPO, there were expectations the company could achieve a valuation of around £1bn.According to reports, the floatation comprises 80.9 million shares, an offer size of £206.4 million, representing 38% of DFS's share capital. DFS will use the funds raised by the initial public offering to reduce debt.Jefferies, UBS and Numis were appointed to handle the IPO of the retailer, which is controlled by private equity firm Advent International.DFS has 105 stores across the UK, Ireland and the Netherlands and is the largest sofa retailer in the UK with a 26% market share.