Wellington, July 8 NZPA - Rumours of a possible float of outdoor clothes and retail chain Kathmandu are being reported by The Australian Financial Review newspaper.

In an unsourced report, the AFR reported today an initial public offering of Kathmandu was being "touted around town".

It was understood investment banks keen to be involved had made five or six proposals to Kathmandu's owners.

The size of the IPO was expected to value Kathmandu, which has stores in this country, Australia and Britain, at between $500 million and $600 million.

Kathmandu is owned by Godman Sachs JBWere's Hauraki Equity No 2 fund and Quadrant Private Equity, which bought the business from founder Jan Cameron in 2006.

AFR reported Kathmandu was bought from Ms Cameron for more than $A400 million ($NZ510m).

A spokeswoman for Goldman today said the firm was not commenting on the AFR report.

While any business owned by private equity could be a candidate for a sale at the right price, an industry source questioned whether an IPO would be likely at this time given the shaky state of equity markets.