Drinks and snacks group C&C plans to float in Dublin and London next month. The group, which abandoned a €1.1 billion flotation in the summer of 2002 amid uncertain market conditions, plans an institution-only offering that could value it at up to €1 billion.

C&C, whose brands include Bulmers cider, Ballygowan mineral water and Tayto crisps, hopes to release its prospectus to investors early next week before embarking on a roadshow in Ireland, Britain, Europe and the US.

"The company has an impressive record of growth and cash generation and we are excited by the opportunities afforded by public company status," chief executive Mr Maurice Pratt said.

Market sources said the company was likely to be valued at between €800 million and €1 billion, with shares worth about €500 million likely to be floated.

The company's 92 per cent shareholder, BC Partners, is expected to reduce its stake through the flotation to around 40 per cent, resulting in a freefloat of around 60 per cent.

The flotation should also allow C&C's senior management to raise some money from their shareholdings. Some 40 members of the company's senior management own 5 per cent of the company between them.

These include chairman Mr Tony O'Brien, with a stake of 0.8 per cent, which would be worth around €8 million, based on a market capitalisation of €1 billion.

Chief executive Mr Maurice Pratt owns 0.4 per cent of the company. Other large shareholders include finance director, Mr Brendan Dwan, whose 0.5 per cent shareholding could be worth up to €5 million, and Mr Brendan McGuinness, who heads the company's alcohol division and has a 0.55 per cent stake.

C&C's 2,000 employees should also benefit from the flotation through the company's approved profit-sharing scheme, as their 3 per cent shareholding is distributed according to a formula based on length of service.

As with Eircom, retail investors and C&C's trade customers, including publicans, will only be able to participate in the flotation through a stockbroking intermediary, although the minimum investment is not yet known.

Analysts said that pricing would be the key factor in determining the success of the IPO, only the second in the Irish market in three years after Eircom's listing last month.

"If it's priced right, it has a reasonable chance," one Dublin-based analyst said. He added that the improvement in stock market conditions over the last 18 months should offset some negative developments for C&C's business over the past two years.

These include increased competition from Walkers Crisps, the doubling of excise duty on cider and, most recently, the introduction of the smoking ban.

Fund managers also expressed an interest in adding C&C to their portfolios, provided the price was right.

"It has a lot of good brands and good cashflow and I expect the pricing won't be too racy," one fund manager said.

Citigroup and Goldman Sachs International are acting as joint global co-ordinators and bookrunners of the IPO. IBI Corporate Finance and Davy Stockbrokers are acting as joint lead managers of the offer while Deutsche Bank is acting as co-lead manager. McCann Fitzgerald is legal adviser to the IPO.

C&C, which was formerly known as Cantrell & Cochrane, was established in 1968 when Allied Breweries and Guinness Ireland merged their Irish soft drink and cider interests.

Allied Domecq acquired full control of the group in July 1998 when it purchased Guinness Ireland's interest only to sell it to management and venture capital group, BC Partners, in a leveraged buyout the following year.

The group has three main divisions: alcohol, international spirits and liqueurs, and soft drinks and snacks.

More than 70 per cent of its sales come from Ireland with a further 18 per cent from Britain and Northern Ireland.

In the financial year to February 29th, the group reported broadly flat earnings before interest, tax, depreciation and amortisation (EBITDA) of €147 million on revenues of €782 million.