Shares in Kraft Foods are due to start trading on Wednesday on the New York Stock Exchange in what is the second-largest stock market float in US history.

Kraft said on Tuesday it expected to raise as much as $9bn from the sale of 280 million shares, up from previous estimates of $8.4bn, after the food maker bumped up the price range of the stock to $30-31 a share.

The company, through underwriters Salomon Smith Barney and Credit Suisse First Boston, had previously priced shares in the $28-30 range, still making it the largest stock float since AT&T Wireless's $10.6bn offering last year.

Kraft is the largest food manufacturer in the US. Following its $19.2bn purchase of Nabisco Holdings in December, Kraft owns some of the best-known names in the industry, including Kraft, Nabisco, Jell-O, Philadelphia cream cheese, Post cereals, Kool-Aid, and Maxwell House coffee.

Giant food company

Kraft raked in nearly $35bn last year, surpassing such rivals as Kellogg and General Mills, and putting it second only to Nestl�, which had revenues last year of $45.3bn.

Institutional investors are keen on the idea of investing in Kraft's well-known - and well-trusted - brands.

"Kraft has a portfolio of high-quality brands as well as good visibility in those brands," said Tim Sharman, an analyst at Royal & Sun Alliance Investment Management in London. "It comes across very well, and it's a solid company."

Tobacco roots

Kraft was purchased by cigarette manufacturer Philip Morris in 1985 in the hopes of diversifying the company's holdings and revamping its image.

Kraft, unlike its parent, has a strong, positive reputation with the American public - something Philip Morris officials felt could be sullied if it did not spin-off the food unit.

Still, the shares represent only 16% of Kraft Stock, and Philip Morris will still control the company.

And some industry watchers have said the share price might be too steep even for some institutional investors.

Analysts point out, however, that the stock float is just the first step toward a full spin-off that could see Kraft operating as an independent firm within two years.

Getting rid of fence straddlers

With shares edging up to $31, one source said, "it's getting pretty expensive," adding that several large institutional investors balked on Tuesday after learning of the increased share price and were considering pulling out.

Others are more sanguine, saying the rise in share price will reduce what they see as overly strong demand for the stock.

"It's going to get rid of a lot of fence straddlers," said David Menlow, whose firm, IPO financial.com, tracks stock market floats.

"The deal is going to be under heavy institutional demand and will probably do well at the opening."