RPT-IPO VIEW-Dollar General set to price at rich valuation

(Repeats to widen distribution)

* Valuation seen as rich

* IPO set to price on Thursday

By Michael Erman

NEW YORK, Nov 6 (Reuters) - Dollar General (DG.N: Quote, Profile, Research) is set to go public next week, but the discount retailer could see mixed results in its closely watched initial public offering as its private equity backers have valued the company richly.

The $750 million offering of the retailer controlled by private equity firm Kohlberg Kravis Roberts & Co [KKR.UL] is expected to price on Thursday and begin trading on the New York Stock Exchange next Friday.

Dollar General, which has 8,700 stores across the United States, plans to sell 34.1 million shares for between $21 and $23 a share. At those prices, Dollar General would be valuing itself more richly than competitors like Target Corp (TGT.N: Quote, Profile, Research), Wal-Mart (WMT.N: Quote, Profile, Research) and Dollar Tree .

"The valuation doesn't look great," said Nick Einhorn, research analyst with Renaissance Capital in Connecticut. "I wouldn't expect it to be a home run."

"It wouldn't shock me if it ended up being similar to a Dole Food (DOLE.N: Quote, Profile, Research) which ended up trading down" in its first day of trading last month, he said.