Carphone Warehouse to float

Tech shares sell-off has not deterred listing plans

European mobile phone retailer Carphone Warehouse has unveiled plans to float in July.

The group said in a statement on Wednesday it would offer some 20% of its shares to investors.

Already market speculation is that the company could be valued at £1bn.

"There is enormous potential in the mobile market and... Carphone Warehouse is extremely well positioned to benefit from this," chief executive Charles Dunstone said.

Market nerves

The recent global sell-off in global technology stocks - which has deterred many internet start ups from floating - has not put Carphone Warehouse off.

"Our advisers' view is that there is a lot of growth in the hi-tech sector. Carphone Warehouse gives you the growth of the hi-tech, but without the risks of being a start-up," Mr Dunstone said.

The funds raised are expected to be used to further its expansion into continental Europe.

"Europe is our key focus, it's the most advanced mobile phone market in the world. Our aim is to be the market leader in each European market," Mr Dunstone said.

The company has 459 stores in the UK and 421 stores across Europe.

Millionaire Dunstone

Carphone Warehouse was set up in 1989 by the then 25-year old Charles Dunstone with a £6,000 loan.

The company has long been expected to float and a stock market listing would turn Mr Dunstone, who owns 60% of the company, into a multi millionaire.

The company had sales of nearly £700m in the year ending 25 March, 2000.

Credit Suisse First Boston has been appointed global coordinator and is joint lead manager along with Merrill Lynch International.