Petrol forecourts operator EG Group is preparing for a US initial public offering (IPO) this year, targeting a valuation of around $9 billion and looking to raise approximately $1 billion. The company, founded by brothers Mohsin and Zuber Issa and backed by TDR Capital, will engage with major banks next week to select advisers for the listing. Participating banks are expected to include Barclays, Bank of America, Goldman Sachs, JP Morgan, and Morgan Stanley.
The move towards a US listing, potentially under the name Cumberland Farms, reflects the company's strategic shift, as the US has become its largest single market. EG Group's global headquarters are relocating to Charlotte, North Carolina, and its chief executive, Russell Colaco, is based there. This decision is seen as more logical than a London flotation, which would provide access to a deeper capital pool in the US, and represents another blow to the London market, which has seen several companies opt for foreign listings or delistings.
EG Group is roughly 50% owned by London-based private equity firm TDR Capital, which also holds a controlling stake in the supermarket chain Asda. The Issa brothers each own about 25% of EG Group. The company has over 4,300 sites globally, employing approximately 33,000 people and serving 1 billion customers annually. In recent years, EG Group has reduced its borrowings by selling assets, including the majority of its UK sites to Asda, and disposing of operations in Italy and Australia.
