PE-backed Nine raises $577m in Australia IPO

The offering - which includes the sale 131 million new shares and 179.7 million existing shares at A$2.05 apiece - gives Nine a market capitalization of A$1.92 billion, representing a multiple of 8.3x EBITDA. Nine will start trading on the Australian Securities Exchange (ASX) tomorrow under the code NEC.

"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," David Gyngell, CEO of Nine, said in a statement. "I look forward to welcoming our new shareholders."

Oaktree and Apollo Global took control of Nine in a debt-for-equity swap worth nearly $3 billion at the start of this year. The agreement wiped out A$1.8 million of equity held by former backers CVC Capital Partners in the largest-ever loss on a single private-equity deal in Asia.

Oaktree, which currently owns 28% of the company, is selling 89.1 million shares, reducing its stake to 14%. Apollo meanwhile is retaining all its shares but its holding will be diluted from 26% to 22%.

Of the money raised, A$198.7 million will be used to pay down debt while A$395.3 million will go to sellers of existing shares, according to a prospectus. Nine forecast sales of A$1.57 billion for the year ending June 30, 2014, and EBITDA of A$305 million. The company estimated net income of A$139.5 million, from A$136.7 million in the previous 12 months.

CVC paid A$5.3 billion for Nine Entertainment - formerly known as PBL Media - through several highly leveraged transactions between 2006 and 2008. However, the company ran into trouble following the global financial crisis as advertising sales began to decline.

Crescent Capital Partners-owned travel insurer Cover-More Group is also set to go public in Australia this month, targeting A$521.2 million. The company will sell up to 260.6 million shares at A$2 apiece. Crescent plans to reduce its shareholding in the company to 13% from around 83%.

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• Topics
• Australasia
• Media
• Exits
• Australia
• Apollo Global Management
• Oaktree Capital
• IPO
• Media