CVC set for biggest float since Porsche
THE private equity giant that owns Lipton Teas and a stake in the Six Nations rugby tournament revealed plans today for the biggest European flotation by valuation since 2022.
Luxembourg-based CVC Capital Partners plans to raise at least €1.25 billion (£1.07 billion) in the float on Euronext Amsterdam, which would value it at around €15 billion. That would make CVC the biggest company to IPO in Europe since Porsche in 2022.
Boss Rob Lucas said: “We have spent more than 40 years building the CVC Network, and developing a unique entrepreneurial culture centred on delivering consistent investment outperformance for our clients.
“We believe an IPO of CVC provides an enduring long term institutional structure to support further growth, we remain completely focused on the continued success of CVC, and neither I nor any of my active partners are selling shares as part of this transaction.”
CVC manages more than €186 billion worth of assets, including owning a one-seventh stake in rugby’s Six Nations. It made €556 million in profit last year. The float will give it more fuel for future takeover, and the option to use shares to buy more firms.
The listing has been repeatedly delayed as market uncertainty made IPOs rare. But mainland Europe’s IPO market has recovered this year, Swiss skincare firm Galderma listed last month at a €13 billion valuation, while Athens International Airport and perfume retailer Douglas AG are among the other multi-billion-euro firms to float. Galderma shares are up 17% since the float.
In contrast, London has lacked flagship new listings, with smaller firms like Air Astana and London Tunnels among the most exciting new shares on offer in the City. Chinese online fashion retailer Shein could change that if it opts to list in London, in what would likely be a $50bn mega-float.
The battle between the City and mainland Europe’s exchanges will be again be in focus when Unilever’s ice cream division chooses where to float. The consumer goods giant’s CEO Hein Schumacher has hinted that the Dutch-headquartered owner of Ben & Jerry’s and Magnum could choose Amsterdam.