Key Takeaways

  • AS Watson’s planned $30bn dual listing in London and Hong Kong could become the standout UK retail-related IPO of the year.
  • Superdrug is a flagship UK Brand within the AS Watson group, with 2024 Revenue of £1.6bn (+7%).
  • AS Watson group revenue reached HK$209bn (~£19bn) in 2025, up 10%, with EBITDA up 11%.
  • The deal is being advised by Goldman Sachs, UBS and Latham & Watkins.
  • A successful float could provide a much-needed positive reference point for UK retail equities.

Introduction

After several years in which UK retail equities have struggled to attract sustained investor enthusiasm, AS Watson’s planned $30bn dual listing offers something different. Anchored by familiar UK brands like Superdrug, Savers and The Perfume Shop, the deal could provide London with the sort of large, brand-rich retail-related listing the market has been missing.

What Happened

AS Watson, the global health and beauty retailer owned by Hong Kong-based CK Hutchison Holdings, is preparing a dual listing of its shares in London and Hong Kong before the end of 2026, according to multiple reports. The float is targeting a valuation of around $30bn, with the company expected to raise approximately $2bn from the offering.

The London leg of the listing has drawn particular attention because of the rare scale of the deal. AS Watson operates around 17,000 stores worldwide across multiple banners, and its UK portfolio includes Superdrug, Savers and The Perfume Shop. Goldman Sachs, UBS and Latham & Watkins are advising on the dual listing, which remains subject to market conditions.

Superdrug, founded more than six decades ago, has been the most visible AS Watson brand in the UK. Superdrug revenue rose 7% to £1.6bn in the year to December 2024, while AS Watson group revenue reached HK$209bn (about £19bn) in 2025, up 10% year on year, with EBITDA up 11% to HK$18.2bn (about £1.7bn).

Why It Matters

UK retail stocks have been under pressure for years, with falling high-street footfall, online competition and Inflation eroding sentiment. A high-profile listing anchored in part by UK retail brands could shift that narrative.

AS Watson’s ability to grow revenue and EBITDA at double-digit rates across a global footprint of 17,000 stores demonstrates that scale-based retail businesses can still be high-quality Assets. The London leg of the dual listing would be a chance for UK investors to access that profile.

More broadly, a successful float would be a positive reference point for any UK-listed retailer trying to argue for a higher valuation multiple. It could reset the conversation around UK consumer staples.

Company and Sector Background

AS Watson is the world’s largest international health and beauty retailer, with about 17,000 stores across multiple regions. It is part of CK Hutchison Holdings, the diversified conglomerate.

The UK Business is anchored by Superdrug, Savers and The Perfume Shop. Superdrug, in particular, is one of the most recognisable mass-market beauty and pharmacy brands in the UK and has continued to grow at a time when several UK retail peers have stalled.

The broader UK retail sector has seen extensive consolidation, restructuring and store rationalisation in recent years. Companies that have successfully blended physical and digital channels have generally outperformed those that have stuck rigidly to either model.

Internationally, beauty and personal care retailers have continued to attract investor interest, supported by resilient consumer Demand and the perceived defensiveness of category spending.

Main Market Catalyst

The catalyst is the rarity of a large UK retail-related IPO. A $30bn dual listing with substantial UK brand exposure is a chance for the market to re-engage with the sector at scale.

Pricing will determine the level of optimism the deal generates. A book that prices at or near the $30bn target would suggest that UK retail brands, when packaged inside a global growth story, can still command international-grade valuations.

Equally important is the structural signal. If long-only UK and European investors take meaningful allocations, that will validate the appetite for large retail-related listings; if demand comes more heavily from Asia, the conclusion will be more nuanced.

What the Numbers Show

AS Watson group revenue: HK$209bn (≈ £19bn) in 2025, up 10% year on year. Group EBITDA: HK$18.2bn (≈ £1.7bn), up 11%. Targeted IPO valuation: $30bn. Targeted IPO proceeds: $2bn. Global store footprint: about 17,000. Superdrug 2024 revenue: £1.6bn, up 7%. Advisers: Goldman Sachs, UBS and Latham & Watkins.

The headline numbers describe a large, profitable global retailer with diversified geographic exposure and a stable Cash Flow profile. The blended growth rates — 10% Top Line and 11% EBITDA in 2025 — are unusual for a brick-and-mortar retailer at this scale, and they form the core of the Equity story.

For UK investors, the most relevant micro number is Superdrug’s 7% revenue growth to £1.6bn in 2024. Superdrug’s positioning in mass-market beauty and pharmacy has resonated in a UK retail environment where many peers have struggled. The Savers and Perfume Shop banners add further UK exposure to the group’s consolidated growth profile.

Broader Market Context

UK retail-listed companies have faced a tough decade. Many have been forced to restructure, change strategy or sell to Private Equity. The presence of a major brand-led retailer in the IPO pipeline could remind investors that the sector still has globally relevant assets.

The London IPO calendar more broadly has been quiet, with multiple deals delayed or rerouted. A successful AS Watson float could shift sentiment and encourage other delayed offerings to come back to market.

Internationally, the deal would be watched as a barometer for both London’s listing competitiveness and the appetite for cross-border consumer IPOs.

Risks and Considerations

Market Risk is the most immediate concern. IPOs of this size are sensitive to broader equity market conditions, and a sustained period of Volatility could push the deal back into 2027.

Execution risk is also material. Dual listings of this scale require coordinated regulatory work, syndicate management and careful pricing across two very different markets. Goldman Sachs, UBS and Latham & Watkins bring substantial expertise, but the complexity is still real.

Strategic risk includes the question of whether the eventual book of investors will value AS Watson as a global growth retailer or as a more conventional consumer staple. The answer will affect the valuation outcome and the pricing of subsequent equity issuance.

Geopolitical risk should also be acknowledged. AS Watson’s operations span Asia, Europe and other regions, and CK Hutchison’s broader portfolio sits across multiple jurisdictions. Any deterioration in cross-border regulation or trade conditions could affect the offering or its aftermarket performance.

Finally, investors should remember that intentions to list are not commitments. The dual listing remains subject to market conditions and could be re-scoped, re-timed or re-located if circumstances change.

What Investors Should Watch Next

First, confirmation of the timing and structure of the dual listing. A formal launch announcement would set the calendar for the most consequential IPO London has seen in some time.

Second, the indicative valuation range. Anything close to the $30bn target would be a notable validation for London’s ability to host large international consumer IPOs.

Third, the structure of the UK retail brand presentation in the prospectus. How the company positions Superdrug, Savers and The Perfume Shop within the global story will signal how it wants investors to value the UK exposure.

Fourth, the broader UK IPO calendar. A successful AS Watson dual listing could open the door for other delayed deals to come back to market.

Fifth, the response of long-only institutional investors, including UK and Asian pension funds, sovereign Wealth funds and dedicated consumer staples managers.

 

 

Bottom Line

AS Watson’s planned $30bn dual listing could turn Superdrug — and the broader AS Watson UK portfolio — into a bright spot for London’s retail-related IPO market. The deal’s scale, brand familiarity and growth profile mean it could become one of the defining UK market events of 2026 and a catalyst for renewed interest in retail equities.