Graeme Hart's Rank Group looking at having another go at floating Carter Holt - report

Sources said Rank would look to raise more than A$500m in the IPO. Photo / John Stone

Graeme Hart's Rank Group is reportedly looking again at floating building supplies group Carter Holt Harvey.

Local investment bank Forsyth Barr and Australian firm Barrenjoey have been appointed to advise on a potential A$1 billion initial public offer and dual listing, according to the Australian Financial Review.

The business would be spun off and trade under the name Building Supplies Group with revenue of about A$1.55b per year and earnings before interest and tax of about $150 million.

Sources told AFR's Street Talk that Rank would look to raise more than A$500m in the IPO.

Hart has twice previously looked at floating part or all of Carter Holt and last shelved plans in September 2015.

Rank paid $3.31b for Carter Holt in 2006 and has since sold the company's forestry and farm land and its pulp and paper unit, leaving a smaller business focused on wood products and building supplies.

The distribution of building supplies is under the spotlight in New Zealand amid rising prices and product supply constraints.

Last year the Government asked the Commerce Commission to look at whether Kiwis are being ripped off by the cost of building materials.

The cost of building materials has been a longtime concern in New Zealand, even before the latest bout of inflation.

The Productivity Commission estimated people in New Zealand pay between 20 and 30 per cent more for building materials than those in Australia.

Last November the Commerce Commission confirmed it was undertaking a market study of factors that may affect competition for the supply or acquisition of key products defined as foundations, flooring, roof, structural and non-structural walls and insulation.

A draft report is due in July and a final report by December.

Carter Holt, which competes primarily with Fletcher Building, has a national footprint of stores and plants, and about 38 per cent of its sales are products internally made by Building Solutions Group.

Wood products include structural timber, laminated veneer lumber and plywood.