Fast moving film-to-Internet operation Redbus Film Group has confirmed that it will float on the London Stock Exchange during the second quarter this year in a move that is understood to put a $400m-$500m price-tag on the company.

Redbus, which is re-branding itself as filmgroup, has appointed ABN AMRO Rothschild as financial advisor on the float, which is reportedly to take place next month. The company is marketing shares to international and UK institutional investors and to UK retail investors.

The proceeds are to fund filmgroup's planned Video-On-Demand (VoD) service via the Internet in the UK. The company has launched a film-related and e-commerce service from its website through which the VoD service will be offered when launched in the last quarter this year. Filmgroup aims to offer more than 400 titles when it launches and 750 soon after.

Chief executive officer Simon Franks declined to specify how much of the cash raised will be channelled into theatrical distribution operation Redbus Film Distribution (RFD). But RFD, which will continue under its current name, is to help feed the VoD service. Signalling the company's theatrical ambitions, it is expected to acquire all UK rights to $85m Sylvester Stallone-vehicle, Champs.

Commenting on the recent disappointing performances of Internet stock, Franks said: "We have been aggressive in the timing and careful on the price."