HMV set to take centre stage

HMV MEDIA is the first of the heavyweight consumer brand flotations to break cover and name a date. The £850m debut of the 500-outlet books and music chain is scheduled to take place with a public offer of shares early next month.

It should ensure HMV floats with a strong wind at its back. Buoyant trading in music at Christmas and a recovery in its 200 Waterstone's bookshops have helped boost like-for-like sales by about 8% in the third quarter while profits rose £12m to £76m in the same period.

Operating profits for the year to April are forecast to rise 20% to £140m.

HMV, led by chairman Eric Nicoli, plans to raise about £350m from its float, which will help halve its own debts and could pull in £70m for debt-strapped parent EMI, which owns 43% after a 1998 management buyout.

Since then, venture capital group Advent has held 40% and senior managers the balance. They are also expected to sell part of their holdings.