TPG Launches Roadshow IPO Seeking Valuation Of Around $ 9.5 Billion
Private equity firm TPG launched its traveling briefing to investors on Tuesday, seeking a valuation of up to $ 9.5 billion in its initial public offering, entering the home stretch of a process that has taken months.
The company and some of its shareholders aim to sell shares for between $ 28 and $ 31 apiece, she said in a regulatory filing on Tuesday. He plans to trade on the Nasdaq under the ticker symbol “TPG”.
TPG, based in Fort Worth, Texas and San Francisco, plans to price its bid next Wednesday and list its shares the next day, although the timeline may change, according to people familiar with the matter.
The Wall Street Journal first reported in June that TPG was in the early stages of valuing a public listing that could value it at around $ 10 billion.
TPG aims to sell 28.3 million shares in the offering, while China Life Trustees Ltd. plans to sell 5.6 million shares, according to the filing.
TPG’s offering is set to be the first major IPO of 2022, and its performance will help investors, bankers and other companies looking to go public assess the health of the IPO market. Traditional IPOs last year raised more than $ 150 billion in the United States, according to Dealogic.
But despite the record number, the IPO’s performance faltered in the final weeks of the year. At the end of December, around two-thirds of newly listed companies were trading below their IPO prices.
Shares of publicly traded private equity firms have experienced a tear of late, in part thanks to a rising market. Low interest rates have also made borrowing cheap, leading investors hungry for yield to funnel hundreds of billions of dollars into corporate coffers.
The strong performance of the group has led others to list stocks, including European private equity firm Bridgepoint Group PLC and Blue Owl Capital. Inc.,
which was formed last year by a merger with a special purpose acquisition company.
With $ 109 billion in assets under management and offices worldwide, TPG was one of the last original buyout giants to remain a private partnership. With the IPO, it will join peers such as Blackstone Inc.,
Global management of Apollo Inc.
and KKR & Co., which have been public for years.
Unlike those companies, which retained their partnership structures for many years after their IPOs before converting to C companies in the wake of the 2017 tax cuts, TPG will debut as a company called TPG Inc Rivals’ decisions to convert have contributed to their recent surge in valuations over the past two years.
TPG is smaller than many of its competitors, who have created sprawling companies investing in areas such as credit, real estate, and insurance. But the IPO should give it fuel to expand its already significant segments dedicated to large-scale private equity, investing in fast-growing companies, socially responsible investing, real estate and tailor-made investment opportunities. in areas such as PSPCs and public enterprises.
TPG is also in the process of starting a business dedicated to buying second-hand equity stakes in private equity funds, an area known as secondaries. He said on Tuesday he hired a co-managing partner for the company to run its European operations.
The offering is led by JPMorgan Chase & Co., Goldman Sachs Group Inc.
and Morgan Stanley.
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