Superdrug owner AS Watson weighs delaying £1.5bn London dual IPO until 2027
Superdrug owner AS Watson is weighing a delay to its planned £1.5 billion stock market listing in London and Hong Kong until 2027 as it faces possible regulatory complications in Asia.
The group, based in Hong Kong and part of CK Hutchison Holdings, had been preparing for a flotation in autumn 2026. The transaction was expected to value AS Watson at approximately £22.5 billion.
That timetable could now move into next year, according to reporting by the Financial Times. Yet the IPO remains under consideration, with AS Watson Chief Executive Officer Malina Ngai saying in May that no decision had been made.
AS Watson has reportedly been working with Goldman Sachs, UBS and law firm Latham & Watkins on the proposed flotation. It had not settled whether London or Hong Kong would serve as the primary listing venue.
Sale of French perfume chain Marionnaud could affect listing process
The potential delay comes as AS Watson explores the sale of Marionnaud, its French perfume and cosmetics chain, to BEHN.
Market participants familiar with Hong Kong listing rules said the disposal could amount to a “material change”, which could require AS Watson to refile its listing documents. CK Hutchison has begun the information and consultation processes tied to a possible change in Marionnaud’s ownership, but the transaction has not been finalised.
AS Watson acquired Marionnaud for HK$5.5 billion in 2005. The chain now operates about 700 stores across seven European markets, including 377 locations in France.
The proposed IPO would also provide Singapore’s state investment company Temasek with a possible route to sell its holding of almost 25%. Temasek acquired the stake for close to $6bn in 2014.
Delay would add to London’s listings shortage
A postponement would take one of London’s larger prospective transactions out of the city’s 2026 IPO pipeline. Only seven companies had floated in the capital by 20 July, raising a combined £2.2 billion, amid a prolonged shortage of new listings and further overseas takeovers of UK-listed businesses.
AS Watson runs more than 17,000 stores across 12 retail brands in 31 markets. Its portfolio includes Superdrug and Savers in the UK.
The group has kept investing in its retail operations while it considers the flotation. In June, it launched AS Watson Brand Lab, which draws on insights from more than 180 million loyalty members to identify and expand beauty and personal care brands through its international network.
AS Watson also appointed Charlie McElroy as Superdrug’s Sales Operations Director in June. McElroy, who joined the retailer as a Store Manager 25 years ago, is responsible for sales operations and supporting performance across its store estate.
