Is CWH set to float?


Chemist Warehouse Woden, September 2013.
Chemist Warehouse believes there is not enough competition under the current pharmacy model.

Speculation is back that Chemist Warehouse could be headed for a float, potentially listing in 2019 for more than $8 billion

In late 2017, finance pages were abuzz with speculation that the discount giant could be headed for an ASX listing, following reported discussions with fund managers and investment bankers.

But in March 2018, co-founder and chairman Jack Gance told The Australian’s Eli Greenblat that the company had no interest in an initial public offer (IPO), though it had investigated a range of options.

Instead, it planned to continue seeking growth in Australia and internationally, especially in New Zealand.

“We look at all options but at this stage we have no interest in any public float,” Mr Gance told Mr Greenblat at the time.

Now, the rumours are back.

“Next year could be shaping up as a big one for equity capital markets bankers if the speculation that Chemist Warehouse is on track to head to the markets for a float, valuing the company at more than $8 billion, proves right,” write Bridget Carter and Scott Murdoch, also in The Australian.

“The understanding is that an IPO is back on the cards for 2019 and is shaping up to be the transaction of the year.”

They suggest that Macquarie Capital and Citi investment banks are “likely to be close to the action”.

“Suggestions of an IPO was the talk of its supplier day in Melbourne this month,” they write.

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4 Comments

  1. Tim Hewitt
    15/11/2018

    should we be surprised?

  2. Paige
    15/11/2018

    Would an IPO by them constitute a public admission that they aren’t adhering to ownership laws?

    • Jarrod McMaugh
      16/11/2018

      No, because the float won’t be of the pharmacies, it will be of the management company that services the pharmacies.

  3. Ex-Pharmacist
    15/11/2018

    Great news. I will be a buyer for sure, as will many pharmacists. I wouldn’t work for them, but as a shareholder I get to own part of this success story which will certainly continue to grow & reap the fat government subsided profits as dividends. How many shares can I have? Will the Pharmacy Guild of Australia be buying in?

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