The owner of Poundland has been valued at around £4.3 billion (5 billion euros) ahead of its stock market debut.

Pepco, which also owns the Dealz and Pep&Co brands, has confirmed the valuation as it set the price of its shares at 40 zlotys (£7.61) for the initial public offering (IPO) on the Warsaw Stock Exchange.

Poundland owner Pepco has announced stock market float plans (Pepco/PA)

The share offering is expected to raise around £602 million (700 million euros) to help fund the company’s long-term growth strategy.

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It is understood the listing has been oversubscribed by more than five times.

Pepco trades from 3,246 stores across 16 European countries, including more than 1,000 in Poland.

The listing comes almost two years after South African owner Steinhoff started assessing options for the retail group following the fallout of its own 2017 accounting scandal.

Steinhoff has said it will sell at least 15% of its shares in the company, which is run by former Asda chief executive Andy Bond.

Mr Bond said: “We are proud to be joining the Warsaw Stock Exchange in what will be its biggest IPO to date in 2021 and to become one of the largest listed companies in Warsaw.

“Our group operates in the attractive European discount retail sector, and with our three market-leading brands we are extremely well positioned to take advantage of the enormous growth opportunities in front of us.

“We are pleased to have received strong interest and support from a broad range of high-quality international and Polish investors, including substantial retail demand, who have all recognised the quality of our financial track record and the substantial, long-term store growth opportunity that we can readily finance through our internally generated cashflow.”