Zayre Corp.’s off-price store business went public.

The Framingham, Mass.-based retailer said it will sell 16% of its ownership for $200 million in a bid to raise cash and bolster its stock price. Zayre shares last week advanced $2.125 to $26 in heavy trading as Wall Street responded favorably to the plan, which places a value of about $1.2 billion on the off-price division as a whole. The offering will give stock market investors the first chance to buy shares of a large off-price business, aside from such regional chains as Syms Corp., and analysts said there may be strong pent-up demand for the shares.