The hedge fund that owns the biggest booksellers on both sides of the Atlantic, Waterstones in the UK and Barnes & Noble in the US, is reportedly laying the groundwork for a major stock market flotation. According to a report in the Financial Times, Elliott Investment Management has initiated talks with potential advisers about an initial public offering (IPO).
London Favoured for Major Bookselling IPO
In a move that could provide a significant lift to the City of London, the multibillion-pound group is understood to favour listing the combined bookselling business on the London Stock Exchange over its rival in New York. The UK market has faced challenges in attracting large new listings in recent years, making a potential IPO of this scale a welcome development.
While discussions are at a preliminary stage and plans remain subject to change, sources suggest Elliott could appoint investment bankers early in the new year. The company's financial year concludes in April, making a public offering unlikely before the late summer at the very earliest.
Daunt's Leadership and Market Dominance
The potential flotation follows a period of sustained success for the two booksellers under the leadership of chief executive James Daunt. Daunt, who also owns his own independent book chain, has been at the helm of Waterstones since 2011. During his tenure, he has successfully navigated the challenge from online giant Amazon and overseen the acquisition of notable rivals including Foyles, Hatchards, and Blackwells.
Together, Barnes & Noble and Waterstones operate a vast retail network, with more than 600 shops in the US and over 300 in the UK. Speaking to the BBC earlier this month, Daunt indicated that an IPO, whether in New York or London, seemed like an "inevitability" as private owners typically seek an exit. He remarked that a public listing was "probably better than being flipped to the next private equity person."
Elliott's Expanding UK Footprint
New York-based Elliott, known for its activist shareholder campaigns against major corporations, has steadily built a presence on the British high street. The fund acquired Waterstones in 2018 from Russian billionaire Alexander Mamut and purchased Barnes & Noble for $683 million (£510m) in 2019.
Its UK investments also extend to a stake in the food chain Wasabi. Last year, Elliott made an unsuccessful bid to acquire electronics retailer Currys and has been applying pressure on the board of oil major BP, which recently ousted its chief executive.
An IPO of the Waterstones and Barnes & Noble group would mark a notable event for London's financial sector, offering a counter-narrative to the trend of companies choosing to list in New York or retreat into private ownership.
