- Private equity firm hoping for valuation up to €16 billion
- Going public would allow firm to expand and diversify model
- Amsterdam market picked over New York and London
Private capital investment firm CVC Capital Partners hopes to get an IPO (initial public offering) away at the third attempt later this month.
The London-based buyout giant, which owns stakes in Liptons Tea, upmarket watch maker Breitling, Six Nations Rugby as well as the commercial rights to French and Spanish top-flight football, has been plotting a stock market listing for years.
CVC said that it is seeking to raise a minimum of €1.25 billion through the sale of €250 million of new shares as well as a sale of stock by some existing shareholders. But in another blow to the London equity market, CVC plans to list its shares on the Euronext Amsterdam exchange rather than the London Stock Exchange (LSEG).
WHAT THE IPO DOCUMENTS SAY
IPO documents released today (15 Apr) by CVC show that the firm is principally partner-owned, with total share ownership consisting of roughly 74% by management shareholders at the end of 2023. Another 18% of the business was owned by three global institutional investors which acquired an interest in 2012, while the remaining 8% stake is owned by a collection of Blue Owl GPSC funds that acquired a stake in 2021.
Funds managed by Blue Owl’s General Partners Strategic Capital platform, formerly known as Dyal Capital, have committed to invest in up to 10% of the offering. Selling shareholders are expected to include Danube Investment, a nominated investment vehicle of GIC Special Investments, and the Kuwait Investment Authority. None of the selling shareholders are active employees of CVC, the private equity company said.
APPETITE FOR PRIVATE EQUITY
The move would see CVC join a growing number of European private equity firms go public, following the LSE listing of London-based Bridgepoint (BPT) in 2021 and the 2019 listing of Stockholm-based EQT (EQT:NYSE) in New York. Blackstone (BX:NYSE) and KKR (KKR:NYSE) are also listed in New York.
Over the weekend, the Wall Street Journal reported that CVC was looking for a valuation of about €13 billion to €15 billion, citing people familiar with the matter, although there is speculation that CVC could attract a market valuation as high as €16 billion.
Issue Date: 15 Apr 2024