HOUSEBUILDER Miller Homes has announced its intention to raise £140 million through listing on the London Stock Exchange.

The move has been approved by the board of the company's parent, Edinburgh-based Miller Group, and is likely to value the business at around £450m.

The Group's chief executive Keith Miller will remain in place there and continue to oversee its property development and mining interests.

Miller Group said: "The intended flotation will provide an excellent opportunity for Miller Homes to continue to grow and prosper."

The proceeds of the initial public offering are to be used to pay down debt and allow Miller Homes greater flexibility to increase its landbank.

Miller Homes chief executive Chris Endsor will continue to run the business. He said: "Our distinctive focus and deep knowledge of the regions in which we operate, together with our large and well-located strategic land bank, position Miller Homes to drive strong and sustainable growth and to benefit from the continued recovery in these regional markets.

"It is an excellent time to be operating in the housebuilding sector, with demand for new housing continuing to grow supported by improving macroeconomic conditions and mortgage market and a more favourable planning environment."

The Group finance director Richard Hodsden is moving to the same position in Miller Homes when the initial public offering goes through.

Alongside that Tony Rice, former Tunstall and Cable & Wireless Communications boss, becomes chairman of Miller Homes and Deena Mattar, previously Kier Group finance director, joins the board as senior independent director.

Breedon Aggregates chief executive Simon Vivian and Michael Whitman, senior managing director of private equity firm Blackstone Group, also become non-executive directors.

Mr Rice said: "We have a highly experienced and capable executive team and have recruited a strong board."

Yesterday Miller Homes outlined that it believes it can sell an additional 1,000 houses a year over the medium term with little increase in its overhead costs.

Completions in 2013 were 1,684 with an average selling price of £181,000 while the first six months of this year saw completions at 845 with prices up to £198,000.

The business does not have any exposure to the London market but is well represented in the rest of the UK. Revenue between January and the end of June this year was at £173.6m, up from £123.3m, while underlying operating profits more than trebled to £19.4m.

The major shareholder of Miller Homes is Grain Holdco, which is in turn 100 per cent owned by Miller Group (UK).

The largest shareholder in Miller Group is funds managed or advised by GSO Capital Partners, a division of Blackstone.

Others with stakes include Royal Bank of Scotland's West Register Investments, Lloyds Banking Group's investment arm Uberior Equity and Noble Grossart Investments.

Investor roadshows are expected to start shortly with the flotation pencilled in for the end of October.

A full prospectus has yet to be published.

It is expected Miller Homes will issue new shares alongside a sale of existing shares. The free float is likely to be at least 40 per cent of the issued share capital.

GSO Capital Partners bought into Miller Group, which was founded in 1934, three years ago.

Royal Bank of Scotland, Bank of Scotland and National Australia Bank also swapped debt for equity as part of the refinancing arrangement.

Management and Miller family members are also shareholders.

Earlier this year Miller Group offloaded its construction arm to Galliford Try.