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Asda May Return to Stock Market via IPO

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CommissarJones
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Asda May Return to Stock Market via IPO

#221771

Postby CommissarJones » May 15th, 2019, 11:44 am

From an update to Asda managers delivered today:

Asda wrote:However, [Walmart International CEO Judith McKenna] confirmed that "While we are not rushing into anything, I want you to know that we are seriously considering a path to an IPO – a public listing – to strengthen your long term success."

Alaric
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Re: Asda May Return to Stock Market via IPO

#221775

Postby Alaric » May 15th, 2019, 11:56 am

The parent Company Walmart is listed on the NYSE, so an Asda IPO would be a demerger. It's suggested that it was some years away.

I believe the proposed Asda Sainsbury's merger had an element of sale by Walmart to it. I don't know if Walmart needs the money a sale of Asda might raise.

westmoreland
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Re: Asda May Return to Stock Market via IPO

#222551

Postby westmoreland » May 17th, 2019, 7:36 pm

asda is actually the best run supermarket outside of lidl / aldi IMO. whilst profits have been in decline, it has stayed consistently profitable, whereas all the others have had massive losses at various points in the past 10 years.

it has a lot of freehold property (75%), and a pension free balance sheet. if it did IPO, i'd expect walmart shareholders to all dump their shares, regardless of valuation. it could be an interesting opportunity, at the right price.


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