LONDON — The initial public offering of Qinetiq, the U.K. advanced research laboratory which is predicted to raise £1.1billion ($1.9billion), is reported to have cleared another hurdle after Treasury officials granted approval for the flotation.

With just formal ministerial approval still to go, a flotation is expected before March. The U.K. Ministry of Defence still owns around 56% of the company with U.S. private equity group, the Carlyle Group, holding a 31% per cent stake for an initial equity investment of £42.4million when the defence group was privatised in 2002.A £1.1billion valuation would make Carlyle’s stake worth £340million.

The first indication that the company was to be floated came in August when it appointed brokers ready for the IPO.