HD Supply officially announced it has started an initial public offering of more than 53 million shares of common stock. HD Supply expects to grant the underwriters a 30-day option to buy up to an additional 7.9 million shares of common stock.

The IPO’s price is expected to be between $22-$25 per share and HD Supply intends to use the net proceeds to redeem, repurchase, acquire or retire all $950 million of the outstanding 10.5% Senior Subordinated Notes due in 2021 and a portion of the outstanding 11.5% Senior Notes due in 2020.

In other HD Supply news, the company reported $2.1 billion in sales – a 12.6% or $232 million increase compared to the first quarter of 2012. The company’s gross profits increased 14.3% (or $75 million) to $598 million.

 “The fiscal 2013 first quarter was yet a further continuation of our strong performance as we continue to benefit from growth in our businesses and strengthening market conditions,” HD Supply CEO Joe DeAngelo said. “We’re pleased with the first-quarter results, marking our 12th consecutive quarter of year-over-year sales growth.”