Key Takeaways

  • AS Watson’s planned $30bn dual listing in London and Hong Kong could be the biggest UK IPO of 2026.
  • London has had a quiet stretch for major new listings, with several deals delayed or rerouted to other venues.
  • Superdrug is among AS Watson’s flagship UK brands; its 2024 Revenue rose 7% to £1.6bn.
  • The float is being advised by Goldman Sachs, UBS and Latham & Watkins.
  • A successful listing could open the door for other delayed UK IPOs to come back to the market.

Introduction

London’s IPO market has been searching for a marquee deal to restore confidence after a quiet stretch, and the planned $30bn dual listing of AS Watson — owner of Superdrug, Savers and The Perfume Shop — could finally provide it. The deal’s sheer size and UK Brand exposure have given the City its most promising IPO story in years.

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

London’s IPO market has struggled in recent years, with several major listings delayed, withdrawn or moved to other venues such as New York. A $30bn deal anchored by a familiar UK retail brand would represent a significant change of tone for the market.

For market infrastructure providers — exchanges, Investment banks, law firms and listing advisers — a successful AS Watson deal would be a meaningful revenue event and a confidence booster. For potential UK issuers, it would be evidence that London can still host large consumer floats at international valuations.

Company and Sector Background

AS Watson is the world’s largest international health and beauty retailer, with about 17,000 stores worldwide. The group sits within CK Hutchison Holdings, the diversified conglomerate controlled by the Li Ka-shing family.

Its UK portfolio is anchored by Superdrug, alongside Savers and The Perfume Shop. Each brand has carved out a distinct niche in UK mass-market retail. Superdrug is best known for combining accessible beauty with a high-street pharmacy presence and has continued to grow even as parts of the UK high street have struggled.

The London IPO market has historically been one of the most active in Europe, hosting large issuers across financial services, energy, technology and consumer sectors. In recent years, however, activity has slowed, with several headline deals being delayed or rerouted. UK listing reform has tried to address these concerns and the AS Watson float would be a meaningful test of whether the changes are starting to attract larger international issuers.

Globally, big consumer IPOs often act as bellwethers for the broader new-issue calendar. A successful AS Watson deal could shift the tone for the rest of 2026 and 2027.

Main Market Catalyst

The catalyst for the London IPO market is the sheer scale of the AS Watson deal. At $30bn, it would be one of the largest consumer floats to come to London in years and a powerful signal of the city’s ongoing relevance.

Pricing dynamics will be watched closely. A book that prices at or near the $30bn valuation would validate London as a venue for large international consumer offerings; a softer outcome would still be material but would temper the broader IPO market optimism.

The split between London and Hong Kong also matters. Allocating meaningful Demand to the London leg would underline the city’s ability to attract international Capital, while a heavier Asian allocation could raise questions about the depth of UK demand at scale.

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

Several large UK companies have either delayed listings or chosen alternative venues in recent years, citing valuation discounts and concerns about Liquidity. London has been working to address those concerns through listing reforms designed to attract more international issuers and improve overall market depth.

Globally, the new-issue market has been cautious. After a strong period in 2020 and 2021, activity slowed and has only partially recovered. A high-profile, well-received deal can quickly change the mood; a poorly received one can re-set expectations downward.

The AS Watson deal is therefore being watched not just for its own merits but as a leading indicator for the rest of the IPO calendar in London and beyond.

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

Superdrug’s listing hopes — embedded inside a much larger AS Watson dual float — could be the catalyst London’s IPO market has been waiting for. The deal’s scale, brand familiarity and structural significance mean it will be watched as a bellwether for UK new-issue activity and, more broadly, for London’s status as a global listing venue.