London’s IPO market has been barren, making AS Watson’s planned dual‑listing the only bright spot. The Hong Kong group will float its UK pharmacy arm, Superdrug, a 62‑year‑old chain that posted £1.6 billion in 2024 sales. Though a fifth the size of Boots, Superdrug has outpaced rivals, growing sales nearly twice as fast over the past four years.

Superdrug’s edge lies in cheap, TikTok‑driven beauty trends, especially “dupes” that mimic luxury brands. Exclusive ties to e.l.f Beauty supply viral items, while only 17 percent of UK health‑and‑beauty spend occurs online, keep shoppers in stores. The sector’s ONS data shows an 18 percent year‑on‑year rise, far outstripping the 1.3 percent growth in overall retail. Its annual sales growth of 4.5 per cent beats the sector average.

From 2014‑2024 earnings rose about 15 percent annually, implying roughly £135 million this year. Applying an 18‑times forward‑earnings multiple, comparable to US retailer Ulta Beauty, values Superdrug at close to £2.5 billion. The figure dwarfs its 2001 sale price of £280 million and would represent a modest slice of AS Watson’s broader £30 billion IPO ambition.

Investors will weigh Superdrug’s growth story against the complexity of a conglomerate listing, but the float could revive London’s stalled IPO pipeline.