6th February 2015
DFS Furniture plans to list on the London Stock Exchange, targeting a valuation of up to £1 billion.
The sofa giant said that it is planning to raise £105 million from the listing and will use the money to reduce its debt by redeeming a £200 million bond.
DFS owners, private equity firm Advent, said it will sell at least 25% of the company to secure a main-market listing.
The company is the second largest furniture retailer in the country, after Ikea, and is famed for its aggressive sales policy where sofas are consistently sold at a discount.
Ian Filby, chief executive of DFS, said: ‘Our visions is to take DFS from being a great British business to a world-class business.
‘This is an exciting time for us as we continue to drive growth initiatives that are already underway against a backdrop of an improving macroeconomic environment. We see significant opportunity to further increase the group’s penetration in the UK, strengthen our position as the market leader for online upholstered furniture sales and we recently entered continental Europe with the opening of our first store in the Netherlands.’
The listing follows the listing of DFS’ smaller rival SCS Sofa last month – the listing valued the company at £70 million. Online furniture retailer Made.com is also considering floating, and is rumoured to be targeting a valuation of £500 million.