Value retailer B&M is mulling a float on the stock market next year as the fast-growing business targets further growth.
Investment firm Clayton Dubilier & Rice (CD&R), which owns 60% of B&M Retail, could appoint investment bankers to draw up plans for a public listing before the end of the year, Sky News reported.
The float would represent a return to the stock market for former Tesco chief executive and B&M chairman Sir Terry Leahy, who left the supermarket business more than two years ago.
CD&R only acquired its stake in B&M last December in a deal understood to be worth £965m. A float is expected to value the business at well over £1bn.
B&M recorded a 71% rise in pre-tax profits to £88.3m last year and is understood to have enjoyed a strong year so far.
Fellow value retailer Poundland last week interviewed eight investment banks as it pursues a public listing worth more than £700m, it is understood.
It is understood investment group KKR could be interested in tabling an offer to buy Poundland before the potential float.