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Wendy's Sets Tim Hortons Range

The chain will sell 29 million shares for $18 to $20 apiece.
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Wendy's

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set more details of the Tim Hortons deal Tuesday, saying that it intends to sell 29 million shares of the doughnut chain for $18 to $20 apiece.

The IPO is the first step in the eventual separation of Tim Hortons, the Wendy's subsidiary whose popularity has made it a cash-raising target of various activist investors. Wendy's will own roughly 85% of the company after the sale and plans to spin off the holding to shareholders in the ensuing nine to 18 months.

A deal could be priced in March. Wendy's finds itself in a rising market for fast-food concepts after a recent IPO from

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unit was well received. Burger King is also planning a return to public markets this year.

Tim Hortons will raise about $580 million in its offering and, provided it's priced within the range, see an overall market capitalization of about $3.8 billion. Most of the proceeds will go back to the parent as debt retirement.

Wendy's closed at $58.66 Monday, about a dollar below its all-time high of $59.94, which it touched Feb. 2.