The flotation which was cancelled last summer because of poor market conditions will be the largest in a year and is seen by some analysts as a sign of renewed confidence in the stock market.

"It's a sign of market confidence now they feel they can commit to a float. Six months ago there was no appetite for new issues," said Hilary Cook of Barclays Private Clients.

Music retailer HMV and bookmaker William Hill were the last major companies to risk a share sell-off, more than a year ago.

Yell said the pricing and allocation of its shares was expected to take place on 9 July and trading to begin on 10 July.

It said the shares would cost between 250p and 300p each, giving the total group a market capitalisation of between �1.76bn and �2.11bn - making it large enough to be a candidate for the FTSE 100 list of top companies.

Confident move

"The valuation the company is being bought on is very realistic.

"Companies need to ensure pricing is not too greedy at the moment," Isis Asset Management chief investment officer Robert Talbut told BBC News Online.

Financial spread betting firm IG Index said it expected Yell shares to start trading between 285p and 295p.

The telephone directories firm was bought by private equity firms Apax and Hicks, Muse, Tate & Furst from BT Group in 2001.

The owners said they hoped to raise about �850m from the offer, which will be open only to institutions, not private shareholders.

The flotation plans are said to have been accelerated by Yell's recent failure to buy Seat Pagine Gialle, the Italian business that owns the Thomson directories in the UK.

IPOs in Europe, the Middle East and Africa are languishing.