Private equity owners of outdoor clothing and equipment retailer Kathmandu are to sell out of the business completely in a public share offer priced at $A1.70 a share.

The price – set after an institutional book build – is at the lower end of the indicative price range of $A1.65-$A1.90 a share and values the company at approximately $A335 million.

The IPO, managed by Goldman Sachs JBWere and Macquarie Capital, was supported mainly by institutions who are understood to take up 60% of the shares on issue.

The bulk of the stock is understood to have been sold across the Tasman.

A spokeswoman acting on behalf of the sale process said a New Zealand dollar price would be determined later this evening.

The shares are scheduled to begin normal trading on the NZX and ASX this Friday.

Kathmandu chief executive Peter Halkett said the price reflected the strength of the business and an understanding of the growth strategy.

“We are delighted with the success of the offer which will provide us with a high quality share register”, Mr Halkett said.

Kathmandu has been owned by Goldman Sachs JBWere and Quadrant Private Equity after they purchased the business from founder and NBR rich-lister Jan Cameron in 2006.

The investment statement noted that the previous owners may continue holding between 0-15% of the stock. But demand from institutional buyers saw them sell out completely, the spokeswoman told NBR.

Kathmandu currently has more than 80 stores in Australia, New Zealand and the UK.

The company is focusing on the Australasian retail scene over the next two to three years, with plans to open more than 70 new stores in Australia and New Zealand.

After news broke of the Kathmandu IPO, Ms Cameron went public announcing her own plans to set up a new discount outdoor clothing and equipment retail business.

The Kathmandu float follows a disappointing $2 billion share sale of Australian retailer Myer, which closed its first day of trading at $A3.75 – below a listing price of $A4.10.