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LONDON — South African conglomerate Steinhoff said on Friday it had set the price of shares in discount retailer Pepco at 40 zlotys (8.8 euros) in its Warsaw listing, giving the company a market capitalisation of 23 billion zlotys (5 billion euros).

Pepco, which owns the Poundland chain in the United Kingdom as well as the PEPCO and Dealz brands in Europe, trades from more than 3,200 stores across 16 countries and is led by CEO Andy Bond, a former boss of British supermarket group Asda.

The pricing is towards the lower end of the 38 zloty to 46 zloty per share indicative price range.

Steinhoff, which is still grappling with the fallout from a 2017 accounting scandal, sold 102.3 million existing shares in Pepco, generating gross proceeds of 4.1 billion zlotys (900 million euros).

There is an over-allotment option of a maximum of 12 million shares.

The IPO reduces Steinhoff’s shareholding in Pepco to 78.9%, assuming full exercise of the over-allotment option.

Pepco shares are expected to start trading on the Warsaw Stock Exchange on May 26. ($1=3.7418 zlotys) (Reporting by James Davey; editing by Andrew MacAskill)

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