The Good Guys chain is ready for a $1 billion ASX float

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The Good Guys, already being pursued by two bigger retailers, now has its house in order to float on the ASX later this year.

The IPO is expected to be priced at between $800 million and $1 billion.

The chain, controlled by the Muir family in Victoria, has bought back the 56 joint venture stores it had with local managers.

The company, with annual sales of $2 billion and staff of 3500, can now go to a float with 101 fully-owned stores, plus any it launches between now and listing.

“The transition to 100% ownership is complete,” a spokesman for The Good Guys told Business Insider.

“The non-deal roadshow commences Monday 11 July and the IPO and listing is targeted for towards the end of the calendar year.”

Image: Supplied.

Credit Suisse, Goldman Sachs and UBS have been appointed as joint lead managers to support the IPO.

The Good Guys has said it is ready to hear other offers but it appears that, so far, none have been better than the prospects of a float.

JB Hi-Fi has been pursuing The Good Guys for a deal, which would instantly create a business with sales of almost $6 billion and almost 300 stores.

The chains each have different strengths. JB Hi-Fi is a leading personal electronics retailer and The Good Guys is dominant in home appliances.

Both are strong advertisers. The Good Guys was known for its loud television campaign “Pay Less, Pay Cash”. The group only recently stopped giving discounts for cash sales.

There are also reports of interest from private equity groups and Steinhoff International, the owners of Freedom Furniture stores.

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