Holdsport, which runs the Sportsmans Warehouse and Outdoor Warehouse stores, plans to raise as much as 1.2 billion rand in an initial public offering (IPO) next month.

On Monday, the group said it would offer up to 30 million shares during a book-build process at between 31 rand and 39 rand per share.

The offer is not open to the general public, but selected investors only, and the group will list on the JSE on July 18.

A total of 42.9 million shares will be listed in the apparel retail sector on the main board of the JSE under the abbreviated name Holdsport, with the symbol of HSP.

Holdsport said UBS was the sole financial adviser and bookrunner for the listing and the final offer price would be determined after the book-build process.

Earlier this month, the company announced that its planned listing was to facilitate the exit of majority shareholder, Ethos Private Equity.

Ethos, which bought its stake in the group in 2006 for 681 million rand, owns about 67%, while the company's management consortium owns the rest.

Catering to outdoor and sports enthusiasts, Holdsport's history dates back to 1986 when the first Sportmans Warehouse was opened in Rondebosch, Western Cape.

The company operates 33 Sportmans Warehouse and 18 Outdoor Warehouse stores in SA and has turnover of about 1.1 billion rand.

Its stores are located mostly in value centres in recognised retail nodes in prime locations throughout the country.

The company also has a strategic investment in First Ascent, which is independently managed and supplies technical apparel to the sporting goods industry under the First Ascent brand.

Holdsport said it had maintained strong margins, reporting compounded revenue growth of 12.6%, and earnings from operations before interest, depreciation and amortisation (ebitda) and operating improvement of 13.7% and 13.5% over five years.

"Future growth will be achieved through a focus on increasing turnover from existing stores and expanding store numbers, with a potential to open three to five new stores per annum in the medium term.

"Growth is expected to be supported by the recovery in the South African economy," it said on Monday.

The company is a seasonal business, with the majority of its earnings coming through in the second half of the financial year.

Holidays are important trading periods for both Sportsmans Warehouse and Outdoor Warehouse, with December and January being its most important trading months.