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

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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