Mohsin and Zuber Issa are reportedly taking significant steps towards launching an initial public offering (IPO) for their company, EG Group, in the United States. Reports from Mergermarket and The Telegraph suggest this venture could see a valuation of up to $14.3 billion.
The brothers have a history of strategic expansion, initially building their retail business by acquiring and revamping gas stations from oil majors. Their entrepreneurial journey began with a single gas station in Greater Manchester in 2001, which they expanded into a substantial retail empire.
Currently, EG Group is reported to be in discussions with banks for a potential U.S. listing in 2025. If realized, this IPO would reflect a valuation 13 times its 2023 earnings, which stood at $1.1 billion. Last year, EG’s operations generated a robust $28.3 billion in revenue, highlighting its substantial global presence.
Importantly, the U.S. market is now EG’s largest, following its 2018 acquisition of Kroger’s convenience store business. The company operates nearly 1,500 stores across 30 states under various brand names. This geographic footprint demonstrates the Issa brothers’ focus on capitalizing on American market opportunities.
The potential IPO in the United States represents a significant strategic shift that could impact the London Stock Exchange, already facing challenges in attracting new listings. Another company, Ashtead, has also announced plans to shift its primary listing to the U.S., citing the concentration of its business activities in North America as a rationale.
The Issa brothers’ partnership with TDR Capital in 2015 accelerated their recent growth. They now operate over 5,500 sites across nine countries, though they no longer have a presence in the UK. The decision to list EG Group in the U.S. aligns with their ongoing strategy to diversify and strengthen their business globally.
EG Group has declined to comment on the potential IPO reports, maintaining a focus on their existing operations and continued international expansion. The move to U.S. listings by companies like EG brings to light the competitive landscape in global financial markets and the strategic financial planning involved for multinational corporations.
The potential U.S. IPO by the Issa brothers signifies a pivotal point for EG Group and the broader financial markets. While still in its early stages, this development underscores the strategic decisions being made by companies in response to shifting global economic conditions.
Source: Forbes
