CVC-owned Formula One delays Singapore IPO

Bernie Ecclestone, the company CEO, signaled the delay to Reuters on Thursday. He stressed that the IPO had not been pulled and that it is still the intention to list Formula One this year.

"We're going through all the normal motions," he said "We are getting prepared so all these things are done and then whenever we want to go, we can go."

Another source added that the company will continue its premarketing for the offer and the IPO will be launched once investors feel comfortable with market conditions.

CVC, Formula One's major shareholder since the mid-2000s, sold a $1.6 billion stake to BlackRock, Waddell & Reed and Norges Bank Investment Management ahead of the planned IPO. As a result, the private equity firm's holding fell to around 42% from 63%. CVC will reportedly reduce its interest to around 30% following the full public offering.

However, Donald Mackenzie, CVC managing partner, said the transaction with BlackRock and the others had eased the pressure to pursue an IPO.

Formula One Group is responsible for the promotion of the FIA Formula One World Championship and the exploitation of the sport's commercial rights.

The floatation was expected to be completed as early as June and seek a valuation of around 18-22x EBITDA for the company, with stapled securities comprising portions of debt and equity. The securities - an unusual structure for an IPO in Asia - are expected to pay a yield of 4-4.5%.

On Thursday, UK-based jewelry company Graff Diamonds scrapped its $1 billion IPO in Hong Kong due to depressing market conditions. Baring-backed China Yongda Automobile Services, the leading BMW dealership in China, also shelved its $433 million Hong Kong offering

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• Topics
• Southeast Asia
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• CVC Capital Partners
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• BlackRock
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