Yoga clothing maker Lululemon Corp yesterday (1 May) announced plans for a US$230m initial public offering which will raise US$20.3m to fund its store expansion.

The Vancouver-based retailer hopes to open 20 to 25 stores this year in the US and Canada, and said it may also use the proceeds from the IPO on acquisitions of franchises.

"For fiscal 2007 and fiscal 2008, we have budgeted an aggregate of $28.0m to $34.0m for new store openings," Lululemon said in a filing with the US Securities and Exchange Commission.

Lululemon already has 52 stores in Canada and the US, and posted a profit of US$7.7m on sales of US$149.9m for the financial year ended 31 January.