(Corrects headline and first paragraph to say Ri Happy is a toy retailer, not toy maker)
SAO PAULO, Nov 24 (Reuters) - Brazilian toy retailer Ri Happy, owned by U.S. private equity specialist Carlyle Group LP , has hired banks for an initial public offering, seeking to take advantage of a retail rebound in Brazil, a national newspaper said on Friday.
The IPO is expected to raise 800 million to 1 billion reais ($310 million), according to preliminary projections, newspaper Valor Economico said.
Carlyle has hired banks BTG Pactual, Goldman Sachs, Itaú BBA, Credit Suisse and Bradesco BBI as underwriters, the newspaper said, citing sources.
The proceeds will be used to fund expansion, and Carlyle will sell part of its stake in the company as part of the process. Valor said the IPO is likely to take place in 2018.
Ri Happy and Carlyle declined to comment, according to Valor.
Retail and Brazil’s consumer sector generally is on the leading edge of an economic recovery in Latin America’s largest economy. Many Brazilian retailers, from electronics retailer Magazine Luiza SA to food retailer Carrefour Brasil , are in the midst of aggressive expansion drives.
$1 = 3.22 reais Reporting by Gram Slattery; editing by Jason Neely