Superdrug IPO would put lipstick on a drab UK retail sector

AS Watson’s proposed $30bn dual listing, which could include a standalone IPO for its beauty and pharmacy chain Superdrug, would be a rare boost for London’s subdued IPO market and a positive signal for high-street retail. Superdrug reported £1.6bn of sales in 2024 and has outpaced sector peers with a 4.5% annual sales growth from 2014–24 and roughly 15% annual earnings growth over the same period. Using a forward earnings estimate of £135mn and an 18x multiple, Lex values Superdrug near £2.5bn, highlighting upside versus its last standalone sale (c.£500mn in today’s money). While Superdrug is a small part of AS Watson, a listing would be notable for investors and could renew interest in UK retail assets and London listings.