Home shopping group Ocado has set a price range of between 200p to 275p per share for its IPO and expects a market capitalisation of about £1.18bn.

The maximum number of shares included will be 257.7 million, comprising up to 102.5 million new shares issued by the company, raising approximately £200m, and the sale of up to 155.2 million shares by Ocado shareholders and option holders.

The grocery specialist said that based on the mid-point of the price range, the market capitalisation of Ocado at flotation would be £1.18bn. The valuation is expected to make Ocado eligible for inclusion in the FTSE 250 “in due course”.

Ocado’s prospectus is expected later today. The deadline for applications from customers and employees is July 18, and indications of interest from institutional investors is July 20.

It is expected that the final share price will be announced on July 21 and Ocado expects to float on or around July 26.