OAKVILLE, Ont. — Tim Hortons Inc. has decided to price its initial public offering of stock at $27 per share, at the high end of the revised range announced earlier this week by the coffee and doughnut chain.

The company, which will remain majority owned by U.S. fastfood giant Wendy's International Inc. (NYSE:WEN), said Thursday night that its underwriters are allocating about 60 per cent of the shares for Canadian investors.

At that price, the iconic coffee and doughnut chain is poised to raise about $780 million on Friday, not including the 4.35 million additional shares the company has granted its underwriters the option to buy.

The $27-per-share price tag -- up from an initial range of $21 to $23 a share -- values Tim Hortons at about $4.35 billion, or 11 to 12 times earnings before interest, taxes, depreciation and amortization.

"This offering represents an incredible milestone and accomplishment in our 41-year history," president and CEO Paul House said in a release late Thursday.

Ohio-based Wendy's International, which plans to spin off its remaining 82 to 85 per cent stake in the coffee chain by the end of the year, called the offering "the first step'' to unlocking the value of Tim Hortons.

The shares will begin trading on Friday under the symbol THI on the Toronto and New York stock exchanges.

Many are expecting a feeding frenzy as investors try to snatch up a piece of their favourite java joint, even as analysts caution against paying too much for a chain that's achieved cult-like status among Canadians.

A Tim Hortons outlet is even expected to open in Kandahar after weeks of persistent request from Canadian soldiers stationed in Afghanistan.

Some say the market is already valuing Tim Hortons at $27 US per share, about 14 times EBITDA. International coffee chain Starbucks trades at about 22 times its expected EBITDA.

Analysts watching Tim Hortons are cautious about its growth prospects south of the border, as it has already closed stores in New England and has slowed its expansion pace more than once.

Tim Hortons has said it will use net proceeds from the IPO to repay debt owed to Wendy's, whose sluggish sales have been outpaced by Tim's steady growth.

Founded by its namesake Toronto Maple Leafs defenceman Tim Horton and Ron Joyce, a former Hamilton police officer and franchisee of the first Tim Hortons store, the chain was bought by Wendy's in 1995 in a deal worth $580 million.

At the time, the private company had 1,180 Canadian locations and 17 in the United States, and reported sales in 1994 of $600 million.

In 2005, Tim Hortons earned a profit of $191.1 million on sales of $1.48 billion.