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* Says to raise 200 mln stg from selling new shares
* Refinances debts to reduce interest bill
* Expects to be part of FTSE-250 midcap index
By Tom Bill
LONDON, Feb 20 (Reuters) - Countrywide Holdings, Britain'slargest estate agent by revenue, plans to return to the stockmarket after nearly six years in private hands, hoping a fragilehousing market recovery will be enough to tempt investors amidgrowing demand for new issues.
The company, bought for 1.1 billion pounds ($1.7 billion) bya U.S. private equity firm in May 2007, said on Wednesday itplanned to raise 200 million pounds by selling new shares.
It will use the money to repay some debt and grow thebusiness, including through acquisitions.
Countrywide declined to say what it might be worth afterfloating, but expected to be included in the London StockExchange's FTSE-250 index of mid-cap companies.
Rising equity markets across Europe have fuelled a pick upin initial public offerings (IPO) in recent months. Britishhousebuilder Crest Nicholson returned to the stockmarket last week.
Countrywide Chief executive Grenville Turner said thatlisting showed the IPO market was functioning normally againfollowing the financial crisis, and was also encouraged by signsof improvement in the mortgage and housing markets.
"Sentiment is much stronger than it was five years ago andthe availability of affordable mortgages is coming back," Turnersaid on a conference call with journalists.
House price data is mixed in Britain but there is tentativeevidence to suggest prices are steadying as government measureskick in to encourage banks to lend more.
The average house price in Britain fell from a peak of199,612 pounds in August 2007 to 154,663 pounds in April 2009before climbing to 162,932 in January this year, according tomortgage provider Halifax, part of Lloyds Banking Group.
Share prices for the country's major housebuilders havesoared over the last year as a result of the government's showof support, but some analysts question whether politicalinitiatives will be enough as banks seek to reduce their risksand store capital to meet tougher regulations.
As part of a wider refinancing deal with its lenders,Countrywide said it had raised a further 100 million pounds ofdebt in a move that will cut its annual interest bill from 25million pounds to less than 3 million pounds.
Countrywide, which sells and rents houses and flats, waslisted between 1986 and 2007 before it was taken private at thepeak of the market by U.S. private equity group Apollo. Fellowprivate equity firm Oaktree Capital took control in 2009 via adebt for equity swap.
Countrywide makes 25 percent of its sales in the moreaffluent London and south-east area of Britain, and interest inbuying homes was increasing across the country despite "regionalvariations", according to Turner.
The company reported earnings before interest, tax,depreciation and amortisation (EBITDA), excluding one off items,of 63 million pounds for 2012, on revenues that rose six percentto 540 million pounds.
Goldman Sachs, Jefferies International Ltd and Credit Suissewill be bookrunners for the listing.
