Pacific Equity Partners and partner Svenska Cellulosa AB aim to raise up to 690 million Australian dollars (US$639 million) through an initial public offering of toilet-paper-and-diapers maker Asaleo Care Ltd., the latest exit from an investment by the private-equity firm.

The companies plan to list the venture on the Australian securities exchange late this month, selling shares at between A$1.55 and A$1.80 each, according to a prospectus for the IPO filed Monday with the ASX by Asaleo.

Pacific Equity last month raised A$994.6 million from the sale of a 51% stake in cleaning-and-catering company Spotless Group Holdings Ltd., taking advantage of a much recovered IPO market in Australia in recent months. It followed that up with the sale last week of Peters Food Group Ltd. to R&R Ice Cream PLC. It didn't disclose the terms of the deal.

Stockholm-based SCA and funds advised by Pacific Equity have owned Asaleo, formerly known as SCA Hygiene Australia, since 2011 when it had an enterprise value of A$570 million. Based on the indicative pricing range of the IPO, the companies will raise between A$633 million and A$690 million, and Asaleo will have a market capitalization of slightly more than A$1.06 billion.

SCA separately confirmed the IPO will reduce its investment in Asaleo to about 33% from 50% currently. Pacific Equity will sell its entire investment.

"Since 2012 the business has been undergoing a significant transformation program to improve capacity and profitability," said Peter Diplaris, chief executive of Asaleo.

In addition to the reorganization of the business, he said more than A$100 million had been invested to improve product quality and improve efficiency.

The company has operations in Australia, New Zealand and Fiji producing a range of tissues, diapers, feminine care and incontinence products under brands such as Tork, Sorbent and Libra. In 2013, it recorded sales of A$625 million and had about 1,050 full-time employees, according to the prospectus.

The price for the IPO is scheduled to be announced June 26, with conditional trading on the ASX beginning the next day.

Write to Robb M. Stewart at robb.stewart@wsj.com

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