CVC Capital Partners (CVC), a private equity firm known for its investments in the Six Nations rugby tournament and Lipton Teas, is preparing to sell over 100 million shares in an initial public offering (IPO) on the Amsterdam Stock Exchange. The company is seeking a valuation of between €13 billion and €15 billion, with 114 million shares priced at €13 to €15 each becoming available to public investors. The IPO will also involve the issuance of 18 million new shares by CVC, while the remaining 96 million will be sold by existing stakeholders, including sovereign wealth funds from Singapore, Kuwait, and Hong Kong. Donald Mackenzie, a co-founder of CVC, is also expected to sell up to 10 million shares, representing 1% of his 7% stake, potentially earning him up to €150 million. Trading is anticipated to commence on April 26 after multiple postponements caused by geopolitical events. Despite these setbacks, Reuters reports that shares in CVC have already been oversubscribed numerous times by investors. CVC was established in the early 1990s as a spin-off from Citigroup and currently manages assets worth €186 billion. The company expects the IPO to provide additional funds to fuel growth through future acquisitions, though some stakeholders have expressed concerns that the shift to a publicly traded entity could alter CVC’s priorities. Public companies often face pressure from shareholders to prioritize consistent financial performance and shareholder rewards, potentially limiting the firm’s ability to pursue long-term investment strategies. Additionally, listed firms are subject to increased public scrutiny, which may be a concern for executives accustomed to substantial performance-based compensation. Nonetheless, CVC’s decision to go public follows a trend among private equity firms such as Blackstone, Bridgepoint, Blue Owl, and EQT. EQT’s successful listing on the Stockholm Stock Exchange in 2019 resulted in a significant increase in its fee-earning assets. The IPO market as a whole is also showing signs of recovery in 2023, with a majority of key markets witnessing newly listed companies trading above their offer prices during the first three months of the year, reflecting growing confidence among both issuers and investors.
CVC Gears Up for Amsterdam Stock Exchange IPO, Targetting €13-€15 Billion Valuation
