Poundland Group Plc, a U.K.-based discount retailer, held out the prospect of doubling its domestic store network and expansion into Europe as it announced plans to sell shares in an initial public offering.

The seller of everything from groceries to plant pots sees “significant opportunities” for growth, with potential for more than 1,000 stores in the U.K., compared with about 500 now, it said today in a statement. Ten stores will be tested in Spain over two years, Poundland also said.

Poundland joins newsagent McColl’s Retail Group Ltd. and online appliances seller AO.com in announcing IPO plans as a recovering economy and improving consumer confidence lead growing numbers of U.K. retailers to consider listings. Pets at Home, fashion chain Fat Face and department-store owner House of Fraser have also been reported to be looking at IPOs.

Poundland, which didn’t provide details of what price it anticipates shares will be offered for, expects trading in its shares to start in London in March. The Daily Telegraph newspaper reported Feb. 15 that the company may be valued at 700 million pounds ($1.2 billion), while the Guardian reported the same day it could be valued at 750 million pounds.

The IPO will provide a partial exit for private-equity firm Warburg Pincus, which bought the retailer from Advent International in 2010. Some directors and senior managers may also sell shares, with no new money being raised.

The shares will be offered to institutional investors and at least 25 percent will be freely traded, the company said in a statement.

First Store

Poundland, which opened its first store in 1990, reported revenue of 880.5 million pounds in fiscal 2013, and earnings before interest, tax, depreciation and amortization, excluding some items, of 45.5 million pounds.

“We have built a track record of delivering strong, profitable growth and I believe we have many more opportunities ahead,” Chief Executive Officer Jim McCarthy said in the statement. “The value retail sector has been through a period of profound change in scale, customer perception and financial performance. The sector is now a mainstream feature of the U.K. retail market and Poundland has been a central architect of that change.”

Poundland also announced the appointment of four non-executive directors including former J Sainsbury Plc Chief Financial Officer Darren Shapland. The retailer is chaired by Andrew Higginson, the former finance director of Tesco Plc.

Credit Suisse and JPMorgan Cazenove are acting as joint coordinators, sponsors and bookrunners to the IPO. Canaccord Genuity Ltd. and Shore Capital are co-lead managers, with Rothschild acting as financial adviser to Poundland.

Bloomberg