Poundland’s plans to float on the stock market have gathered pace as the value retailer targets an IPO in early 2014.

Poundland will this week send out letters of engagement to the advisers leading the float - Credit Suisse, JP Morgan, Rothschild and Shore Capital, The Telegraph reported.

Poundland’s private equity owner Warburg Pincus is looking to raise between £200m and £300m, valuing Poundland at between £700m and £800m in the process.

The retailer, which serves 4.5 million shoppers a week, is looking to fund expansion to double its store count to 1,000 in the UK and expand into Europe.

Poundland declined to comment.