Outdoor equipment and clothing retailer Kathmandu said it expected its offer of shares to retail investors to close last night fully subscribed.
The retail part of the company's transtasman float - open to applicants who received a firm allocation from their broker - closed yesterday at 5pm.
The company said
retail demand from joint lead managers Goldman Sachs and Macquarie's high net worth clients was "very strong and required significant scale-back".
The offer to institutional investors will be open on Tuesday and Wednesday.
Unlike the float of fellow Australian retailer Myer there is no general public offer.
Kathmandu is offering up to 99 per cent of its issued capital at a price per share of $2.01 to $2.32, worth a total of $339 million to $457 million.
The company will be dual listed on the ASX and NZX.
The proceeds of the sale will be used to pay back the retailer's private equity owners and reduce the existing debt levels.
Chief executive Peter Halkett said the retail investor response had been strong ahead of the book-build next week.
"We have been able to point to a successful track record of opening stores on both sides of the Tasman, and investors appreciate there is more of the same to come."
The company said there had been particularly strong interest from institutional investors and hedge funds in Hong Kong and Singapore.
There was a recognition that Kathmandu was far from reaching its maturity or saturation point, it said.
Kathmandu has 82 stores in New Zealand, Australia and the United Kingdom, with plans to open another 12 this financial year.
It has identified a total of 70 locations across Australasia for potential new stores.
Some commentators remain unconvinced about the prospects for growth in the retail sector.
The company's comparatively low price range of a multiple of 13-15 "seems a bit high to us", said Kieran Kelly of boutique Sydney fund manager Sirius.
Australia's economic stimulus package and period of low interest rates had finished.
"Most of our retailers we now believe are overpriced."
Coinciding with the Myer offer, Kathmandu was "another opportunistic float taking advantage of a period of sustained increase in retail sales".
