PARIS, Nov 17, 2009 (AFP) - French luxury group PPR on Tuesday 17 November launched an initial public offering on the Paris stock market of its African automobile and pharmaceutical distribution unit CFAO, hoping to raise as much as 959 million euros (1.4 billion dollars).

Gucci, one of the PPR brands

The 31-million-share offer, representing 50.39 percent of CFAO's capital, will run until December 1 and is the largest initial public offering on the Paris market in the last two years.

The offer contains an over-allotment option that if taken would amount to 57.94 percent of CFAO plus voting rights.

PPR, which will retain a 49.5 percent stake, said the offer would be worth at least 834 million euros, a figure that could rise to 959 million euros if the over-allotment option were exercised.

CFAO said the offering would enable it "to strengthen its development strategy ... and its visibility to clients while giving it access to new financing means."

The unit is one of six PPR subsidiaries and accounts for 14.1 percent of PPR sales.

CFAO sales this year are forecast to come to more than 2.5 billion euros.

-- Dow Jones Newswires contributed to this story --