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.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Ben Rooney, CNNMoney.com staff writer

When do you plan to retire?
  • Before age 65
  • At age 65
  • After 65
  • Never

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

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 things you'll love about Windows 10 There's a lot to like about Windows 10. Here are our favorite features in Microsoft's soon-to-be-released operating system. More
Warren Buffett's gone cold. How his top 10 stocks are doing The Oracle of Omaha is an investing legend. But several of Berkshire Hathaway's biggest investments are off to a lousy start in 2015. Will shareholders complain at the annual meeting in Omaha on Saturday? More
BMW's M235i doesn't compromise BMW's new M235i gives you the performance of an M car for a lot less money. More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play