Discount sofa specialist DFS returned to the stock market with an IPO valuing the company at £ 543million – near the low end of the range it had indicated.
The Doncaster-based furniture chain valued the offer at 255 pence a share, after he said last month that he was looking between 245p and 310p per share.
The shares briefly jumped above 270p in the first few minutes of trading before settling just above the offer price.
Had the midpoint of the original range been reached, DFS would have been valued at almost £ 585million.
The DFS management team hopes that the introduction of a 38% stake in the company will be a springboard for international expansion. DFS was listed between 1993 and 2004 before it was private.
Announce the terms of the offer, Ian Filby, Managing Director, said: “We are committed to our vision of transforming DFS from a great UK company to a world class company.
“We have a clear strategy to broaden our appeal, improve our service and make our products more accessible than ever to our customers through a measured store expansion program, the continued development of our multi-channel offering and the constant improvement of our product line. “
DFS, known for selling in a huge range of colors and fabrics, is the UK’s largest sofa retailer with almost 26% of a £ 3 billion market. It opened its first store near Doncaster in 1969 and has 105 stores in the UK, Ireland and the Netherlands. The group also owns the more expensive Sofa Workshop and Dwell chains.
The company has opened 27 stores in the UK over the past four years and plans three to five new UK stores per year, as well as new Dwell and Sofa Workshop stores. DFS said there was also potential for up to 20 more stores in the Netherlands, if the first store in North Holland was successful.