Retailers join growing IPO shopping list Bankers are preparing to list a swelling number of high street retailers on the London Stock Exchange as their private equity backers rush to cash in on a recovery in the IPO market. Discount retailer Poundland and Pets at Home are poised to kick off the slew of initial public offerings in the UK by filing for flotations within the next two months. Poundland, owned by New York-based private equity group Warburg Pincus, is seeking a valuation of £700m-£800m when it files for a flotation as early as next month with a view to listing the shares as soon as March, two people with knowledge of the matter said. Pets at Home, owned by buyout house KKR, could file for an IPO as early as February, two people said. A flotation is expected to value the UK's largest pet store chain at about £1.5bn including debt. The retailers join a long list of private-equity backed groups seeking to tap investor appetite for consumer stocks, which are expected to benefit from an economic recovery in the UK. The companies include The Card Factory, Game Group and Fat Face, the casual retailer that has appointed Citi and Jefferies to advise it on a possible flotation. McColl's, the privately owned chain of convenience stores, could announce an IPO with a putative valuation of £225m as early as next week, according to people familiar with the situation. House of Fraser could also opt for a stock market listing as soon as next month if talks with Galeries Lafayette fall apart. The private equity backers and their bankers are hoping that investors will be attracted to retail stocks even amid weakness on the high street, which is still being pummelled by the rise of internet shopping. Some chains, including niche retailers, discounters and convenience stores are weathering the storm better than mass-market groups such as Wm Morrison and Debenhams. The companies aim to emulate the success of Merlin Entertainments, the London-based theme park operator owned by Blackstone and CVC Capital Partners. Its shares have gained 17 per cent to hit 367p since its listing in November. Fat Face, which is chaired by former M&S chairman and chief executive Sir Stuart Rose, has been transformed by chief executive Anthony Thompson, a former M&S and Asda executive. Over the past four years Mr Thompson has reversed Fat Face's strategy of constant discounting, which he likened to an addictive drug. Its private equity backer Bridgepoint is seeking a valuation of about £400m The retailer was one of the few to avoid a sale before Boxing Day, boosting its sales over the crucial Christmas and new year period. Poundland, which has already began pre marketing for its planned IPO, could also be snapped up by another private equity buyer because of its exposure to the fast growing discount sector, a person with knowledge of the situation said. The first quarter is a popular time for retailers to tap the public markets, following the completion of the crucial Christmas and new year trading periods. Other windows include just before the summer, and the autumn. However, people familiar with the situation suggested that McColl's, Poundland and Pets at Home were all keen to float sooner rather than later, even though no final decision has been made and will depend on market conditions. All parties declined to comment.