Canadian retailer Dollarama Inc, backed by private equity firm Bain Capital, priced its initial public offering of 17.14 million shares at C$17.50 ($16.60) a share, on the Toronto Stock Exchange.

The offering, which is expected to generate proceeds of about C$300 million for the Montreal-based company, will be used to repay its outstanding debt, including its 8.875 percent senior subordinated notes due 2012, the term loan A facility and notes owed to certain shareholders.

The underwriters for the IPO, which include RBC Capital Markets, CIBC World Markets Inc, and Credit Suisse Securities (Canada) Inc, have scheduled the closing of the offering for Oct 16.

Dollarama, which is 80 percent controlled by Boston-based Bain Capital, is the largest operator of dollar stores in Canada.

The offering is the latest in a string of private equity-backed IPO filings in North America, as buyout firms seek to take advantage of the improved markets to exit investments. 

($1=1.054 Canadian Dollar)

(Reporting by Biswarup Gooptu in Bangalore; Editing by Muralikumar Anantharaman)