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LONDON (Reuters) - British discount retailer Poundland has set its share offer price range at 250-300 pence, giving an implied market value of 625-750 million pounds when its lists on the London Stock Exchange, according to an industry source.

The book build amongst institutional investors for Poundland's share offer was currently underway, the source said on Friday.

The chain of over 500 stores, which sells items for 1 pound, said last month its share offer would comprise a partial sale to institutional investors of the holdings of majority owner Warburg Pincus , the U.S. private equity firm, and senior management.

Poundland, the first British discount retailer to seek a public listing, will not be issuing any new shares to investors in the offer.

Warburg Pincus owns 76 percent of Poundland, with the balance owned by the retailer's management, led by Chief Executive Jim McCarthy, a 30-year veteran of the retail sector.

Separately on Friday Britain's biggest pet shop group Pets at Home set its share offer price at 210-260 pence, giving an implied market value of 1.05-1.30 billion pounds.

The firm, mainly owned by U.S. private equity group KKR , is looking to raise about 280 million pounds from the sale of new shares, while KKR and management are also expected to divest partial holdings.

Poundland and Pets at Home's flotations are two of many expected in Britain's retail sector in 2014 on the back of the country's gradually improving economy and consumer outlook.

Convenience store McColl's and online domestic appliances firm AO World have already listed, while Fat Face, B&M and House of Fraser are amongst other store groups expected to come to market.

(Reporting by James Davey; editing by Guy Faulconbridge and Elaine Hardcastle)