Australian broadcaster Nine Network’s parent will join the Australian Stock Exchange on Friday, with its market capitalisation touching nearly A$2bn (US$1.8bn).
Nine Entertainment Company has unveiled the initial float, which values its shares at A$2.05 each and the firm at an overall A$1.92bn (US$1.74bn). This figures represents 8.3 times Nine’s full year 2014 EBITDA.
Nine plans to raise US$643 million from the float.
On Friday (December 6), the company will begin trading at 12pm on the ASX. Nine’s assets include online firm Mi9 and ticketing and the Allphones Arena in Sydney.
Last year, investor groups lead by Apollo Global Management and Oaktree Capital Group took over Nine in a debt-for-equity swap that significantly reduced former owner CVC Capital Partners’s interest. Plans for the long-rumoured IPO then began to gain speed.
According to Bloomberg, the IPO will cut Apollo’s holding from 25.6% to 22% and Oaktree’s from 27.8% to 14.3%.
“We are delighted by the strength of demand received for our IPO across both high quality domestic and international investors, with the offering multiple times covered at the final price,” Nine CEO David Gyngell said. “I look forward to welcoming our new shareholders.”
Nine Network is currently the second-most watched channel in Australia behind Seven.