Dollar General files $750 million IPO

The discount retailer owned by private-equity firm KKR plans one of the largest initial public offerings this year.

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By Ben Rooney, CNNMoney.com staff writer

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NEW YORK (CNNMoney.com) -- Discount retailer Dollar General Corp. on Thursday filed to sell up to $750 million worth of stock in an initial public offering.

The Goodlettsville, Tenn.-based chain, which was bought by private-equity firm Kohlberg Kravis Roberts & Co. in 2007, opperates 8,362 stores in 35 U.S. states.

The $750 million estimate was calculated solely for the purpose of registering with the Securities and Exchange Commission and the actual amount sold could vary. If the company raises the estimated amount, it would be one of the biggest IPOs this year.

KKR will underwrite the offering along with Citigroup (C, Fortune 500), Goldman Sachs (GS, Fortune 500) and J.P. Morgan (JPM, Fortune 500), among others.

The filing did not say when the offering would take place.

Dollar said it will pay a "special dividend" of $200 million to existing shareholders using cash generated from operations. It will also pay a $64 million fee to KKR and Goldman for management and advisory services.

The offering comes as the stock market has rallied broadly over the last several months, raising bets that a revival in the IPO market is on the horizon after demand evaporated in the credit crunch last year.

The company has fared well during the recession as consumers have become increasingly more bargain-minded.

Dollar's profits surged to $83 million in the quarter ended May 1 from $5.9 million a year earlier. To top of page

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