Music retailer HMV plans to float by end June

 

Music retailer HMV Group said today intended to float by the end of June, subject to market conditions.

An industry source said the business would look to raise about £600 million sterling and have a market capitalisation of around £1 billion.

Bankers are hoping a successful IPO will lure private equity-backed businesses to market.

HMV was part-sold by EMI in 1998 to US venture capitalist Advent, which now owns just over 40 per cent of the business. Management own the rest.

Since then, growth at HMV has been boosted by strong demand for new technologies such as DVDs, and its book chain, Waterstone's, has started to recover business it lost to e-commerce and new market entrants such as US giant Borders.

HMV said sales at stores open at least one year rose 8.1 per cent in the 13 weeks to January 26th, with HMV sales up 9.1 per cent and Waterstone's sales up 5.2 per cent.