Tuesday 09 April 2024 12:26 pm
Private equity firm CVC Capital Partners is reportedly planning to launch an IPO on the Amsterdam Stock Exchange as early as next week.
The London-based firm, known for backing the Six Nations, is considering a float of approximately €15 billion (£12.8 billion), according to reports from Sky News’ Mark Kleinman.
Sources suggest that CVC could announce the IPO within ten days, but the success of the float is described as being “on a knife-edge.”
This would mark CVC’s third attempt at an IPO, having first explored the idea in 2021. Previous plans were put on hold due to market volatility attributed to inflation and geopolitical tensions, particularly the war in Ukraine.
The decision to list in Amsterdam instead of London reflects a broader trend of slowdowns in IPO activity on the London Stock Exchange, with only 23 IPOs in the past year compared to 45 in 2022 and a record 119 in 2021.
Despite being headquartered in London, Amsterdam is seen as a more suitable listing destination for CVC, given the euro denomination of its funds and its EU headquarters in Luxembourg.
CVC’s move towards an IPO is also influenced by the success of other private equity firms in the current market climate, such as KKR, whose stock price has doubled in the past year.
If CVC proceeds with the IPO, it is expected to offer only around 15% of its stock to public investors, following a minority stake acquisition by Blue Owl in 2021.
Earlier this year, CVC acquired UK-based video game developer Jagex from the Carlyle Group for £910 million.
CVC has declined to comment on these reports.
