Home Estate Planning Walgreens shelves plans to take Boots public in another blow for London market

Walgreens shelves plans to take Boots public in another blow for London market

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The American owner of Boots has parked plans to list the high street chemist on the London Stock Exchange, in another blow for the market. 

According to a Bloomberg report, Walgreen Boots Alliance is no longer exploring a public offering for the retailer and will instead seek to sell the chain. 

New York-listed Walgreens has struggled in the past year due to high debt following an acquisition spree. It reported operating losses of £13.2bn in the last year. 

Two years ago, the firm tried to sell Boots but later pulled out, citing an “unexpected” change. At the time, the historic retailer had a slew of suitors, including the billionaire Issa Brothers. 

The Nottingham-headquartered business is the UK’s biggest pharmacy chain with over 2,000 stores.

Accounts filed on Companies House showed Boots reported revenue of £7bn in the latest financial year, up from £6.5bn, while its pre-tax profit jumped from £4m to £60m.

The firm has been helped by shoppers continuing to spend on beauty amid the cost of living crisis. 

Reports of the abandoned IPO plans come amid a challenging time for London’s public market, with a number of high profile firms leaving such as TUI. 

Investors are still keeping a close eye on fast fashion giant Shein, who is rumoured to make its first public listing on the London market later this year. 

City A.M. has contacted Walgreens for comment.

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