Russian discount food chain Magnit will float approximately 20% of the company in an initial public offering before the end of the second quarter.

The retailer, controlled by parent company Tander, plans to place existing and new shares on Moscow’s RTS and MICEX, AFX International reported.

Funds raised are expected to support the chain’s aggressive expansion programme and its aim to increase its Russian store network from 1,500 to 2,500 by 2009.