$1 billion queue for Myer

The 109-year-old retailer will be making its very much looked forward return to the bourse on Monday after 3 years in the grasps of private equity owners.

It is believed that more than $1 billion has already been raised and the managers are still counting since the retail offer which had made it possible for Myer's staff and loyalty program members to take part in the float.

A range of $3.90 and $4.90 is expected for the issue of the shares price, it will be determined by institutional bookbiuld, which will be kicking off tomorrow and closing on Thursday. Allocation and pricing will be revealed on Friday.

Some analysts and fund managers had stated that the float is too expensive, however, it is still foreseen to be fully subscribed.

Private consortium Texas Pacific Group and Blum Capital own the company at 84.2% whereas the Myer Family Company owns 8.3%.

In May 2006, TPG bought over the business for $1.4 billion from the hands of the former Coles Myer group.

A 1.3% stake in the empire right after the float will be kept by the Myer family.

UBS analysts, Paul Wong and Ben Gilbert stated in a research report that Myer deserved to trade at a discount to rival.

However, they said that Myer still trades at a discount to peers despite the fact of superior earnings growth and likely upside to 2010 financial year pro-forma estimates even though at the top end of the indicative share price range.