Pets at Home sets offer price for over 1 billion pound listing — Reuters

Britain’s biggest pet shop group Pets at Home has set its share offer price at 210-260 pence, giving an implied market capitalisation of 1.05-1.30 billion pounds ($1.75-$2.17 billion) when it lists on the London Stock Exchange.

The firm, mainly owned by U.S. private equity group KKR , said on Friday between 25 percent and 40 percent of its issued share capital would be freely tradable post flotation.

Pets at Home is looking to raise about 280 million pounds from the sale of new shares, which will include an offer to retail investors, to pay down debt.

KKR, which bought the retailer from Bridgepoint four years ago for 995 million pounds, other shareholders and members of the management team may also realise part of their investment in the firm via the repayment of shareholder loans and a sale of shares.

Pets at Home expects a minimum of 85 percent of the share offer to be allocated to institutional investors, with the balance allocated to retail investors and staff.

The firm expects to announce pricing and allocations and start dealings on the LSE on March 18.

Pets at Home’s listing is one of many expected in Britain’s retail sector in 2014 on the back of the country’s gradually improving economy.

Convenience store McColl’s and online domestic appliances firm AO World have already listed, while discount retailer Poundland has announced an intention to float. [ID:nL6N0LN0OL}

Fat Face, B&M and House of Fraser are amongst other store groups expected to come to market this year.