The UK-based company, which sells a variety of food, health and household products for £1 a piece, has profited from consumers attempting to reduce their spending amid the global economic downturn.
Poundland could be valued at up to £600m today according to the FT, which cited people familiar with the matter.
It said strong demand for a majority stake in rival value chain B&M when it was put up for sale last year suggested an auction was more likely than an IPO.
The business could have its third private equity owner in a row if it is bought by a buyout firm this time around.
Advent International bought the group for £50m in 2002 before selling it to Warburg eight years later.
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