Business

Furniture chain DFS returns to stock market

DFS store Image copyright PA

Shares in Doncaster-based DFS began trading on Friday, starting the day at the price of 255p, valuing the business at £543m.

DFS had previously set its indicative price range at between 245p and 310p. That would have seen the firm valued as much as £1bn.

The shares were unchanged after the first day of conditional dealings.

The Doncaster-based business has 105 stores in the UK, Ireland and Netherlands.

DFS was previously listed on the London stock market between 1993 and 2004 before being taken private.

The retailer is majority-owned by private equity firm Advent International. DFS said the flotation had raised gross proceeds of £98m, which will be used to pay down debt.

DFS chief executive Ian Filby said he was "delighted by the positive response to the offering".

However, retail analyst Nick Bubb said: "It is hard to spin today's news that the IPO has been priced at only 255p... as 'a success'.

"Investors are clearly nervous about DFS's prospects after the election," he added.

Related Topics

Related Internet links

The BBC is not responsible for the content of external Internet sites