(Reuters) - The private-equity owner of Krispy Kreme's UK business has hired investment bank Investec to oversee a flotation of the doughnut and coffee chain, Sky News reported without citing sources.
Sky said the timing and size of the initial public offering were not clear, but cited market sources as saying it would likely happen this year.
Krispy Kreme UK owner Alcuin Capital Partners did not immediately respond to a request for comment, and Krispy Kreme UK declined to comment.
The UK IPO market has been subdued so far this year amid worries about a global economic slowdown and uncertainty about Britain's future in the European Union.
As of the end of February, eight companies had listed in London, raising 385 million pounds ($545 million). That compared with 468 million pounds raised by 11 companies in the same period last year, according to the London Stock Exchange.
Alcuin bought Krispy Kreme UK from an investment group led by three American entrepreneurs in 2011. The Telegraph reported then that the deal was worth 25 million pounds.
Krispy Kreme UK, the largest maker of premium branded doughnuts in the country, has a franchise agreement with U.S.-based Krispy Kreme Doughnuts Inc (N:KKD).
News of the share sale follows chocolate maker and retailer Hotel Chocolat's announcement on Wednesday that it planned to raise 50 million pounds through a listing on London's junior AIM market.
The Krispy Kreme brand started in the United States in 1937. The UK business opened for business in 2003 at Harrods department store in London.
