MOSCOW (Reuters) - Russian hypermarket chain Lenta, part-owned by U.S. private equity firm TPG,
The move could produce a rare success story for a U.S. buyout firm in Russia, giving TPG the opportunity to partly exit an investment it made in 2009.
Lenta said TPG, which owns a 49.8 percent stake, would be a selling shareholder alongside the European Bank for Reconstruction and Development which holds 21.5 percent and Russian bank VTB
Sources familiar with the matter had said Lenta was talking to banks about a listing which could raise at least $1 billion and could command a valuation of over $5 billion.
Lenta will be competing for investor attention with German retailer Metro AG
Metro's listing, planned for the first half of the year, is expected to raise at least 1 billion euros ($1.36 billion) with analysts valuing the total Russian business at 4 billion-7.5 billion euros.
On Monday, Lenta also reported full-year earnings with net profit of 7.1 billion roubles ($201.6 million), up 38 from the previous year on sales of 144.3 billion roubles, up 31 percent with a gross margin of 21.8 percent.
The London shares will trade as global depositary receipts (GDRs) and it also intends to trade shares in Moscow. There is an over-allotment option for bookrunners to buy additional GDRs representing up to 15 percent of the shares sold.
The banks advising on Lenta's IPO are JP Morgan Chase & Co
($1 = 35.2105 Russian roubles)
(Reporting by Megan Davies and Maria Kiselyova; Editing by Douglas Busvine and Elizabeth Piper)