UPDATE 2-Japan's Seibu gets approval to list shares
* Top shareholder Cerberus to sell 15.5 percent stake in IPO
* Tokyo Stock Exchange approves Seibu listing for April 23
* Seibu was delisted in 2004 due to disclosure scandal
* IPO worth about $1.83 billion, implying market cap of $7.8 bln-sources (Adds valuation, sale plans by other shareholders)
TOKYO, March 19 (Reuters) - Japan's Seibu Holdings said on Wednesday it has received approval to list its shares on the Tokyo Stock Exchange on April 23 in an initial public offering that sources said would be worth about $1.8 billion, one of the country's biggest IPOs this year.
Cerberus Capital Management LP, the company's largest shareholder, will sell a 15.5 percent stake, leaving it with about 20 percent of the railway and property conglomerate's shares, according to an exchange filing.
Citigroup Capital Partners, UBS Securities, Norinchukin Bank and the Development Bank of Japan are also selling shares in the offering, which comes nearly a decade after Seibu was delisted in the wake of disclosure scandal. In all, shareholders will sell about a quarter of the company's stock in the offering.
Seibu, which is not raising any money in the IPO, did not disclose a per share price.
Sources with knowledge of the matter said a tentative price had been set at 2,300 yen per share, valuing the IPO at 186 billion yen ($1.83 billion) and the entire company at 787 billion yen. The final IPO price will be decided in the coming weeks based on demand from investors.
Cerberus and Seibu management have been working to mend fences in recent months after a rocky 2013 in which a public feud erupted over when the company should be listed and at what price. The battle included a failed attempt by the U.S. fund to take control of the Japanese company's board.
Mizuho Securities and UBS Securities are the global coordinators on the deal.
($1 = 101.3650 Japanese yen)
(Reporting by Emi Emoto and Nathan Layne; Editing by Dominic Lau and Matt Driskill)