Poundland is being readied for a sale or float by its private equity owner Warburg Pincus, it is understood

US firm Warburg Pincus, which bought the value retailer in 2010 for £200m, is believed to be mulling a sale early next year to capitalise on the popularity of value stores.

It could be valued at up to £600m, according to the Financial Times.

The value sector has attracted significant interest following the strong demand for B&M Bargains last year. US private equity group Clayton Dubilier & Rice snapped up a 60% stake in B&M which valued the business at £965m.

Poundland opened 60 stores in the UK last year and aims to open a further 60 this year. It is eyeing growing its store estate from 450 to 1,000 stores over the next five to 10 years.

The retailer has been in private equity hands for the past ten years. It was acquired by Advent International for £50m in 2002 before it was sold on to Warburg Pincus in May 2010.