The parent of Chuck E. Cheese has begun preparations for an initial public offering (IPO) that could value the U.S. restaurant chain at more than $1 billion, including debt, people familiar with the situation said on Tuesday.

The IPO would be a bet that Irving, Texas-based Chuck E. Cheese’s arcade games and kid-focused activities will differentiate it in the minds of investors from other more commoditized restaurant chains that have failed to whet their appetite.

Chuck E. Cheese’s private equity owner, Apollo Global Management LLC (APO.N), has initiated conversations with banks about an IPO that could come in the second half of 2017, though it has not yet hired underwriters, the people said.

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