One of the country’s largest discount retail chains will begin trading on the New York Stock Exchange Friday. Dollar General expects to raise $445 million after expenses from an initial public offering of stock.
The buyout firm KKR will maintain 90% of its ownership in the company that’s valued at more than $7 billion. The proceeds from the IPO will be used to pay down debt. Shares were priced at $21, on the low end of the range previously announced by the company.
Dollar General’s public offering has been widely anticipated as the retailer looks to take advantage of double-digit sales growth. Cash strapped shoppers are believed to be leaving more pricey retailers in favor of discount chains.
Kohlberg Kravis Roberts & Co. took Dollar General private two years ago in a $7 billion deal. Dollar General, based in Goodlettsville, operates 8,700 stores in 35 states.