Walgreens Boots Alliance is currently exploring options for its UK-based drugstore chain, Boots, including the potential of an initial public offering (IPO) in London. Should a deal be reached, the drugstore chain could be valued at approximately £7 billion ($8.78 billion).

Last year, Walgreens abandoned its plans to sell the UK high street pharmacy chain due to insufficient offers in the midst of global financial instability. Instead, the company opted for a strategic review centered on the Boots business, as it shifted its attention to domestic healthcare.

While an IPO is being considered, there is also the possibility of inviting fresh offers for Boots. However, it is crucial to note that these discussions are still in the early stages, and there is no guarantee that they will lead to a transaction.

According to the company’s website, Boots currently operates 2,200 stores across the UK, encompassing pharmacies, health, and beauty stores. Following the news of the potential IPO, Walgreens shares rose by 1.85% in afternoon trading.

Walgreens recently appointed Tim Wentworth as its CEO in October, hoping that his extensive background in the healthcare industry will help address the challenges faced by the company. These challenges include a significant decrease in sales resulting from Covid vaccinations and testing, as well as a decline in consumer spending due to inflation concerns.

Overall, the potential IPO for Boots signifies a significant development for Walgreens Boots Alliance as it aims to refine its focus on domestic healthcare and maximize the value of its operations in the UK.

Useful links:
1. Walgreens Boots Alliance official website
2. Boots official website