AS Watson considers delaying London IPO amid regulatory hurdles in Asia

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AS Watson considers IPO delay

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AS Watson considers postponing its London IPO to 2025 due to potential regulatory hurdles and asset sales in Asia, per sources.
Temasek aims to exit its nearly 25 per cent stake in AS Watson, acquired in 2014 for close to $6 billion, via the IPO route.
A delay to AS Watson's listing would impact the fragile UK IPO pipeline, which saw only seven listings worth £2.2 billion so far in 2024.

Listing timetable faces fresh obstacles

As reported by the Financial Times, AS Watson is now considering pushing its stock market debut into next year because of potential regulatory and other complications in Asia, according to people familiar with the matter. The company had previously been aiming to proceed this autumn despite broader market volatility linked to the war in the Middle East.

The retailer is part of CK Hutchison and is best known in the UK for Superdrug, though it operates 17,000 stores across 12 retail brands in 31 markets, including Germany's Rossmann. People familiar with Hong Kong listing rules say the group's parallel efforts to sell at least one asset could amount to a material change, potentially requiring it to refile listing documents.

AS Watson is also exploring the sale of French perfumer Marionnaud, according to a filing by its parent company at the start of the month. Earlier this year, the Financial Times reported that Jardines had held talks with CK Hutchison about acquiring supermarket chain ParknShop, another AS Watson business, although a CK executive later denied that a deal was under consideration.

Temasek is expected to use the IPO as a route to exit the nearly 25 per cent stake it bought in 2014 for close to $6 billion, according to people close to the situation. CK Hutchison declined to comment.

Pressure builds on London listings market

A delay to one of the largest prospective London flotations in recent years would add to concerns over the UK's weak pipeline for new market arrivals. The London Stock Exchange continues to struggle to attract listings, while foreign takeovers of UK-listed companies are reinforcing fears that the market is shrinking.

Investors and advisers had been expecting IPO activity to recover this year after a prolonged drought, but several companies, including software group Visma, have delayed their plans. London has recorded just seven listings with a combined market value of £2.2 billion so far this year.

Airtel Africa is one of the few groups still preparing a possible transaction, with the telecoms company hiring more bankers for a London listing of its $10 billion mobile money business as soon as the second half of this year. Even so, any postponement by AS Watson would underline how difficult conditions remain for large-scale flotations in the UK market.

Railpen’s sweetened takeover offer for IP Group highlighted how UK-listed companies are facing renewed deal pressure, with bidders using more complex structures to win over shareholders. Our earlier coverage noted the higher cash component alongside a distribution of Oxford Nanopore Technologies shares and a contingent value right tied to future gains in IP Group’s Metsera stake, underscoring how valuation gaps are being bridged through incentives.

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