Superdrug owner mulls IPO delay to 2027 as London listings drought deepens

The owner of UK retailer Superdrug, AS Watson, may delay its initial public offering (IPO) due to market complications in Asia. The potential push could move what would be one of the biggest London market debuts in recent years. 

The Hong Kong-based company previously trudged on with plans for an IPO despite market volatility due to the Iran War. However, now, it may defer to next year, according to people familiar with the matter. The cause: regulatory and other obstacles in Asia. AS Watson CEO Malina Ngai said in May that no decision had been made. 

According to the Financial Times, AS Watson had been aiming for a dual listing in London and Hong Kong this autumn with plans to raise about US$2 billion in a flotation that would value the business at about US$30 billion. The company was reported to be working with Goldman Sachs, UBS, and law firm Latham & Watkins on the proposed flotation. Whether London or Hong Kong would serve as the primary listing venue has not been decided. 

A delay to the IPO would deal a further blow to the London Stock Exchange. Only a handful of companies have been listed this year. Meanwhile, foreign takeovers of UK-listed businesses have more than doubled in value in 2026, fueling concerns that the country’s public markets are shrinking. 

AS Watson is best known for its Superdrug beauty brand in the UK. 

Fragrance deal throws off plan?

Congruently, AS Watson is exploring the sale of Marionnaud, its French perfume and cosmetics chain, according to a filing made by its parent company this month. 

People familiar wSuperdrug’s parent company weighs delaying one of London’s largest prospective listings. ith Hong Kong’s listing rules have warned that the sale could create a “material change.” This would require the group, part of the conglomerate CK Hutchison, to refile its listing materials. 

AS Watson bought Marionnaud in 2005 for HK$5.5 billion (US$707 million). The French perfume and cosmetics chain has since contracted to roughly 700 stores across seven European markets, with 377 in France.

CK Hutchison has initiated the information and consultation procedures required ahead of a contemplated ownership change at Marionnaud, but no deal has been concluded.

The news comes on the heels of the UK working to bolster its foreign market potential, finalizing a Free Trade Agreement (FTA) with India. Under the deal, tariffs on beauty and personal care products, which previously reached up to 22%, will either be eliminated immediately or over a period of up to 10 years. 

According to the UK government, the FTA al is expected to boost annual bilateral trade by £25.5 billion (US$34.3 billion). In the long run, the UK’s gross domestic product is expected to rise by £4.8 billion (US$6.5 billion).