Princes Group eyes $1.56 billion valuation for its public offer — Is London IPO market hinting at a revival?

Princes Group is set to float at a valuation of 1.16 billion pounds ($1.56 billion) on Friday in one of London's largest initial public offerings this year, pricing its shares at the lower end of the marketed range in a sign of investor caution.

The Liverpool-based owner of Napolina pasta and tinned tuna brand Princes is set to raise around 420 million pounds in the share sale after pricing its shares at 475 pence each.

The previously announced range was between 475 pence and 590 pence per share.

Princes Group intends to use the proceeds to finance further acquisitions, according to its prospectus.

Signs of revival

The IPO is among London’s biggest in recent years and comes amid signs of a revival in activity on London’s markets.

Alternative lender Shawbrook floated at a valuation of 1.9 billion pounds on Thursday, near the middle of its target price range, while cosmetic tech firm Beauty Tech Group floated earlier this month.

Shawbrook shares jumped nearly 7% on their first day of trading, while Beauty Tech 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, is looking to deliver 1 billion to 1.5 billion pounds in incremental revenue growth through acquisitions over the medium term, according to its prospectus.

It was bought by Milan-listed Newlat Food in 2024 for 700 million pounds. Newlat subsequently changed its name to New Princes Group.

Last year, Princes Group generated pro forma revenues of 2.1 billion pounds, according to accounts in its prospectus.