Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

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
Black Friday 2015 in pictures Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More
Driving the ultimate in '50s Mercedes-Benz style The SC was the car that re-introduced Mercedes-Benz as a global luxury car icon. More
Driving the world's first car Driving a replica of the 1886 Benz Patent Motorwagen, the first internal combustion automobile. More
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