Barnes & Noble IPO: U.S. Listing Favoured, But London Has Appeal – IPO Expert

Barnes & Noble’s turnaround story has gained momentum, and an initial public offering could be its next major chapter.

Earlier this year, the Financial Times reported that James Daunt, the boss of both Barnes & Noble in the US and Waterstones in the UK, said it would be “logical” to assess an IPO of a consolidated combination of Waterstones and Barnes & Noble. 

As the company weighs a potential listing, David Manno, a partner at corporate law firm Sichenzia Ross Ference Carmel LLP, said he believes that choosing between New York and London involves a trade-off between visibility and value.

Manno told AskTraders that listing on the NYSE or Nasdaq would be “more advantageous because US investors are already familiar with the [Barnes & Noble] brand,” and such a move would likely offer “higher valuations and liquidity.” 

However, he noted that the London Stock Exchange could allow the company to “stand out more than it would on a NY exchange,” and would broaden its reach to an international investor base.

When it comes to the decision to IPO, Manno told AskTraders that it would give Barnes & Noble access to capital needed to “remodel its existing stores, open new ones that reflect local tastes, and improve its online presence.”

The company’s recent success is said to stem from decentralising decisions and empowering store managers to tailor offerings to local markets, Manno said.

He adds that store designs have become more user-friendly, which, alongside competitive pricing, supports their appeal.

Still, Manno warned that long-term growth will depend on maintaining relevance in an increasingly digital marketplace. 

“It’s important for Barnes & Noble to be able to compete in the online book sales market,” he told AskTraders, adding that improving its online experience remains a key priority.

With its turnaround in full flow, Barnes & Noble could be poised to re-enter public markets. The only question is which side of the Atlantic it will choose.