Chemist Warehouse owners in no rush for IPO

Chemist Warehouse Pharmacist manager James Kocharunchitt and Tasmania state manager Warren Lucas in the new store store at Rosny. Picture: Chris Kidd

The $5bn-plus Chemist Warehouse is believed to have further pushed back plans for its initial public offering, with some now saying that a deal may not happen until next year.

Earlier, the understanding was that bankers were due to pitch before the end of March for a role listing the country’s largest pharmacy chain.

However, sources now say the company is in no rush to list and is not in any urgent need of funds. Already, advisory firm Rothschild has been working with the business, preparing the company structure to be ready for a listing.

Some have questioned whether the state of the daigou trade could be playing a part in a decision to delay a float, although some close to the situation say trade from Chinese online shoppers only amounts to a small part of the Chemist Warehouse business.

Chemist Warehouse is owned by My Chemist Retail Group and was founded by the Gance and Verrocchi families. It controls more than 300 pharmacies and has a complex ownership model enabling the business to work around the restrictive ownership rules.

The company is thought to have generated about $4bn in sales and $250m of earnings.

The management roadshow for a float of the Quadrant Private Equity-backed Peter Warren Automotive is expected to get underway next month.

The understanding is that a selldown of more than $1bn is on the cards, although whether founder and co-owner Peter Warren retains the property sites is be still to be decided, so it may be larger.

Sources say a listing could see the automotive dealership acquire dealers throughout Australia selling Toyota vehicles, with the car maker thought not to be prepared to allow private equity owners to control its dealerships.