Hong Kong tycoon plans to list Superdrug in London

Superdrug’s Parent Company Eyes London IPO

Hong Kong billionaire Sir Li Ka-shing has enlisted the expertise of Goldman Sachs and UBS to prepare for the public listing of AS Watson, the company behind Superdrug, according to China News Service.

This move is set to provide a significant boost to the London Stock Exchange, which has faced challenges in recent times. Sir Li, whose wealth is estimated at £43 billion, plans to list AS Watson shares both in London and Hong Kong. His business empire, CK Hutchison, already holds substantial interests in these regions.

Superdrug stands as the UK’s second-largest health and beauty retailer, trailing only Boots, and reported sales of £1.6 billion last year.

AS Watson’s portfolio extends beyond Superdrug, encompassing The Perfume Shop and numerous other brands. The company operates 17,000 stores across more than 30 countries. Bloomberg has reported that CK Hutchison’s potential public offering could happen this year, with expectations to raise around $2 billion (£1.48 billion).

Sir Li Ka-shing’s Influence in the UK

Sir Li is renowned for his extensive business interests in Britain. CK Hutchison owns and manages vital infrastructure, including water and power utilities throughout the country.

• Wales & West Utilities
• Northern Gas Networks
• Northumbrian Water Group
• UK Power Networks, serving over eight million customers

The conglomerate also operates Eversholt Rail, the UK’s largest rolling stock owner, holds a 49% stake in VodafoneThree, and has been rumored to be interested in acquiring Thames Water.

In the previous year, CK Hutchison sold its Panama Canal port assets to BlackRock, a move prompted by increased scrutiny from the US government over Chinese investments in the region. The transaction involved 43 ports in 23 countries, including two strategically significant canal terminals.

Although Sir Li stepped down as CK Hutchison’s chairman in 2018 at the age of 97, he continues to serve as a senior advisor. The group employs 300,000 people worldwide.

The Rise of Superdrug

Superdrug, now a fixture on British high streets, was established in 1964 by brothers Peter and Ronald Goldstein. The inaugural store opened in Putney, west London, and remains in operation today.

Ownership of the retailer changed hands several times: it was sold to Kingfisher, Woolworth’s parent company, for £57 million in 1987, later acquired by Kruidvat Group, and soon after became part of AS Watson.

Implications for the London Stock Exchange

The proposed listing of AS Watson would be a welcome development for the London Stock Exchange, which has seen a slowdown in new listings. Last year, optimism for a market rebound faded, and several companies—including UK fintech Wise—announced intentions to move their primary listings to the United States.

Only 22 companies went public in London last year, with just nine on the main exchange, raising a total of £2.2 billion.

AS Watson declined to comment on the matter.