The £1.3bn stock market listing of Pets at Home could reap more than £200m for private equity firm KKR.
If there is strong demand for shares in the specialist retailer, some £209m will be returned to existing shareholders. While KKR owns about 85% of the company, the management team are in line for cash and share payments worth more than £20m, according to the firm's prospectus.
KKR's payout could rise further as it will release another tranche of shares if the offer is oversubscribed. After the windfall KKR will still be left with a minority stake in the retailer worth hundreds of millions.
On Friday the retailer said its shares would be priced at between 210p and 260p each, implying a market capitalisation of between £1.05bn and £1.3bn.
If there are buyers at the top end of that price band its chief executive Nick Wood intends to sell a tranche of shares worth £4.8m while retaining a 1.1% stake worth £14.3m. Chairman Tony DeNunzio will crystallise £2.8m while Ian Kellett, its finance director, will collect £3.6m.
Sally Hopson, the customer and people director, stands to collect £2.9m while commercial director Peter Pritchard and Phil Hackney, the logistics director, will get £2.8m and £1.8m respectively.
The payday is on top of a £130.4m dividend shared among shareholders last year. It was the first payment since KKR bought the company for £995m in 2010.
A group of around 500 middle managers own approximately 10% of the company and are being allowed to cash in.
Pets at Home, which has 371 stores, made a pre-tax profit of £41.3m on sales of £515.1m in the 40 weeks to 2 January, according to the report, with like-for-like sales up 2.4%. The price of the shares will be set on March 13 with trading due to start the following week.