British masts group Arqiva broadcasts $2 billion IPO plan
LONDON (Reuters) – British broadcast and mobile masts company Arqiva plans to raise around 1.5 billion pounds ($2 billion) in the biggest initial public offering (IPO) in London so far in 2017.
Private equity owned Arqiva, which carried the BBC’s first television broadcast in 1936, will use the proceeds from next month’s listing to pay down debt.
The implied enterprise value, which includes debt, will be around 6 billion pounds, a source told Reuters.
Arqiva’s owners had been also exploring a sale, but are now pushing ahead with a flotation amid a quickening of pace in the British IPO market in recent weeks.
Ready meals supplier Bakkavor, business services firm TMF and credit services provider Cabot Credit Management are among the other companies planning to list in London.
The listing of at least 25 percent of the company is expected to be the largest in terms of proceeds in London so far this year, according to Thomson Reuters data, although Arqiva’s shareholders, including CPP Investment Board and Macquarie Infrastructure Fund, only intend to sell shares through an over-allotment option of up to 15 percent.
Arqiva said that in the year ending June 30, it posted revenue of 944 million pounds; earnings before interest, tax, depreciation and amortization (EBITDA) of 467 million pounds and an overall loss of 427 million pounds.
Goldman Sachs <GS.N>, HSBC and J.P. Morgan <JP.N> are acting as joint global co-ordinators and joint bookrunners on the IPO.
($1 = 0.7567 pounds)
(Reporting by Dasha Afanasieva; Editing by Rachel Armstrong and Alexander Smith)