Princes Group is eyeing a market valuation of up to £1.24 billion ($1.66 billion) for its upcoming London Stock Exchange debut, the Liverpool-based food and beverage company said on Wednesday.
The move marks one of the most significant listings for a UK-based firm in recent years and comes as London looks to revive its sluggish IPO market.
Earlier this month, British digital lender Shawbrook also announced that it plans to list on the main market of the London Stock Exchange in a flotation expected to value the bank at close to £2 billion.
The company, known for brands such as Princes Tuna, Napolina Pasta and Naked Noodle, is offering shares at a price range of 475 pence to 590 pence, with the potential to raise as much as £400 million in primary capital.
Princes said the proceeds will be used to fund future acquisitions and support its broader growth strategy.
IPO a “natural next step” for the 140-year old brand
Princes Group was acquired last year by Italy’s NewPrinces S.p.A. (NWLF.MI) for £700 million.
The parent company has committed to subscribing for up to £200 million worth of shares at the final offer price, signalling confidence in the business’s long-term potential.
Simon Harrison, CEO of Princes Group said earlier this month the London listing represents a “natural next step” for the 140-year-old brand as it looks to build scale and diversify.
“Beyond providing access to capital to execute our M&A [merger and acquisition] ambitions, it will provide a platform to accelerate growth by expanding our product portfolio and expertise, extending our international reach, and attracting top talent as we continue building for the future,” he said.
NewPrinces shares fell more than 9% on Wednesday following the announcement.
Despite the dip, the company’s stock has gained over 75% this year as its chairman, Angelo Mastrolia, continues to reshape the group’s strategy around acquisitions and brand expansion.
Ambitious acquisition plans
The IPO will also give Princes its own listed equity, which can be used as a currency for mergers and acquisitions.
In an interview with Bloomberg, Mastrolia said the company is seeking packaged-food businesses in Central Europe with annual revenues of at least €200 million.
In the US and Asia, the company is targeting larger strategic assets.
Overall, Mastrolia aims to add between £1 billion and £1.5 billion in annual revenue through medium-term acquisitions.
Princes Group reported £2.1 billion in revenue for its last fiscal year and £964 million for the first half of 2025.
Net profit rose sharply to £30.5 million in the first half of this year, compared to £9.2 million for 2024.
Analysts warn of consumer caution
Market analysts remain cautiously optimistic.
Dan Coatsworth, head of markets at AJ Bell, said that while Princes’ brands are household staples, they face potential substitution risks from supermarket-owned labels as cost-of-living pressures persist.
“Princes could be the victim of grocery product substitution, and that would be a terrible start to life as a UK-listed entity,” Coatsworth said, adding that upcoming fiscal policy changes in the autumn budget could dampen consumer sentiment further.
Still, Coatsworth noted that Princes’ diversified growth strategy — including expansion into Italian foods, oils, seafood, beverages, and emerging categories such as infant nutrition and free-from products — could attract long-term investors.
A boost for London’s IPO market
If successful, the Princes IPO would be London’s largest listing by a UK-based company since Pantheon Infrastructure in 2021.
It adds to a modest but noticeable uptick in public offerings, as the city seeks to reclaim investor confidence after slipping out of the top 20 global IPO markets earlier this year.
Princes’ debut will be closely watched by analysts and policymakers alike as a test of whether London can reignite its appeal for major listings amid growing global competition.
The post Princes Group targets £1.24B valuation in London IPO as city seeks revival in listings appeared first on Invezz