Radio Rentals currently has 67 stores in all Australian states and territories, except South Australia, with more than 200,000 BOR.

Australian Rent to Own company Radio Rentals Australia Ltd filed for a December IPO. The company expects to raise $56 million and will list on the Australian Stock Exchange.

Radio Rentals, which operates in all states except South Australia, is being sold by UK private equity group, Terra Firma.

Radio Rentals will offer 113.4 million shares at 50 cents each to raise $56.7 million; That's about 90 per cent of Terra Firma's holding.

After the float, the company will have a market value of $63.7 million.

The offer opens on next Monday, November 13.

Radio Rentals chairman Bernard Carrasco says in a statement the float will allow the company to expand its business within the Australian household goods market.

"Radio Rentals has a leading market position within the Australian household rental market, a high profile brand name and strong customer relationships," Mr. Carrasco said.

"The business is well positioned for future growth with high levels of contracted rental revenues, strong risk management practices and a senior management team that has great experience in this industry."

Managing director Mr John Hughes said the company planned new product offerings and a possible store expansion. Mr Hughes was MD for a while back in the 90s, and came back a couple of months ago for the float.

Radio Rentals currently has 67 stores in all states and territories, except South Australia, with more than 200,000 BOR.

The company also has a burgeoning Rent-Try-Buy program that it says has increased the average length of customer rental periods to 19 months, and represents around 60 per cent of its 2007 pro-forma revenue forecast.

"Core business growth in the short-term will be generated through a continued roll-out of our successful furniture offering, new technology products such as plasma televisions and laptops, and ongoing segmentation targeting of key customer demographics," Mr. Hughes said.

"Longer term strategic initiatives may include further store expansion, development of consumer finance offerings and increased targeting of our underdeveloped commercial customer base."

Radio Rentals directors expect to declare a dividend for 2007, representing a 6.25 per cent full franked annualized yield on the offer price.

Thorn Australia Pty Ltd trades as Radio Rentals, with their head office situated in Regents Park, Sydney, Australia.