PE firm KKR plans Dollar General IPO

Private equity firm Kohlberg Kravis Roberts (KKR) is preparing for an initial public offering for discount retailer Dollar General, an official said, and others are speculated to follow as it looks to take advantage of a recent rise in equity markets.

KKR is looking to become publicly-listed and successful IPOs of its portfolio companies could be a boost to its ambitions. It has announced plans to combine with its Euronext-listed fund KKR Private Equity Investors and has potential plans for a US listing.

Private equity firms buy firms to eventually exit the investments, either by IPO or selling to a rival.

But they have, for some time, been held back from exiting investments through an IPO amid the market turmoil; while finding potential buyers with the cash available to make acquisitions has been hard.

As markets have risen this year, firms have been cautiously looking for ways to exit investments. Bankers and lawyers have reported a rise in the number of portfolio companies in their IPO pipelines and a increased level of talks with private-equity firms.

One KKR-backed firm, Avago Technologies, is already well into the IPO process. A Singapore developer of semiconductor devices, the firm's shares were priced this week at $13 (Dh47.74) to $15, according to a filing with the SEC.

KKR is also preparing an IPO of discount retailer Dollar General, a source with knowledge of the situation told Reuters. KKR wrote up the value of the retailer in May. A Dollar General IPO would be underwritten by Goldman Sachs, Citigroup and KKR itself, the Wall Street Journal reported.

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