IC states that the shares are ‘by no means a bargain’, but the company offers a good track record and history of growth. It believes that buying shares in Pets at Home could be ‘worth a punt’ but a quick to point out the risks involved (high level of debt). The consensus from the publication is that the shares may offer some short-term upside due to a current trend for interest in retail stocks and the chance that the company may enter the FTSE 250 (which will attract tracker funds).
On admission, the company will have a market capitalisation of £1.3bn if its shares are priced at the upper-end target of 260p.
The minimum investment in the Pets at Home IPO is £1,000 for retail investors.