Fashion chain ponders flotation.

FASHION chain New Look is considering a pounds 1.7bn stock market flotation, it was reported today.

The group, which is owned by private equity firms Permira and Apax, as well as its founder Tom Singh, could list on the stock market during the first quarter of next year, according to the Sunday Telegraph.

Investment banks are said to be lining up to handle the flotation, with Merrill Lynch, Goldman Sachs, Citigroup and Credit Suisse all thought to be interested.

It is understood that the company is also looking for a new chairman with City experience to handle the listing, with current chairman Phil Wrigley expected to leave the group.

Weymouth-based New Look was founded in 1969 by Tom Singh, and was taken private in 2004 by Apax and Permira for pounds 700 million, with Mr Singh retaining a 22% stake.

New Look is one of the few retailers to be benefiting from the economic downturn, as cash-strapped consumers look for value for money. It opened 33 new outlets during its financial year, including a large shop in Liverpool.