EG Group, a United Kingdom-based international operator of convenience stores and gas stations, is considering an initial public offering in the United States amid brightening prospects for the capital markets in 2025 and the firm's increasing focus on the United States.
Founded by the Issa family in 2001, EG Group is working with investment banks for a potential listing in 2025, according to reports from the Times and Telegraph newspapers in London. Forbes put the potential valuation at $14.3 billion, or £11.4 billion.
IPO activity in the United States has risen steadily since the end of 2023, with 36 IPOs launched in the third quarter, up from 35 in the second quarter and 25 in the first, according to S&P Global. Capital markets issuance began to recover following borrowing rate cuts by the Federal Reserve, sparking optimism for a further increase in activity in 2025.
EG Group’s biggest single market is in the United States, where its EG America owns and operates more than 1,600 stores in 30 states.
The company operates stores under multiple banners including Cumberland Farms, Fastrac, Kwik Shop, Quik Stop and Turkey Hill. Brothers Mohsin and Zuber Issa got their start in America in a $2.2 billion (£1.75 billion) deal to buy 800 convenience stores from Kroger.
As its United States operations have grown, its international presence has shrunk, particularly in the United Kingdom.
EG Group has completed a series of divestments in the last 18 months for a total of around $3 billion, applied towards debt reduction, according to Fitch Ratings, an American credit rating firm.
It sold most of its United Kingdom business for $2.5 billion in October 2023, followed by 218 United Kingdom KFC franchise restaurants for $182 million in April 2024. Its remaining United Kingdom business was sold in October 2024 for $342 million.
EG Group also continues its strategy of disposal of non-core United States assets, with 58 sites sold in the first half of 2024, according to Fitch, and completion of more expected by end of this month.
The dispositions are expected to boost profitability for the company, according to Fitch.
Despite selling United Kingdom businesses, a United States public stock offering would still be seen as a significant loss for the United Kingdom stock market, which has seen a string of major companies relist in America, according to the Times.
According to earlier reports, EG Group is working with Rothschild, Barclays, Goldman Sachs, JP Morgan and Morgan Stanley to take part in the IPO.
EG Group declined to comment.
(Updated on 2 January to use Forbes valuation rather than the Telegraph's).