CVC backers plan to sell shares in an initial public offering worth over $1 billion, according to sources

By Pablo Mayo Cerqueiro and Anousha Sakoui

LONDON (Reuters) – CVC Capital Partners’ institutional backers plan to sell shares in the buyout group as part of its upcoming initial public offering, two people familiar with the matter told Reuters.

The company is preparing to raise more than 1 billion euros ($1.05 billion) in one of Europe’s biggest initial public offerings this year, the people said, speaking on condition of anonymity.

The IPO, which could take place in Amsterdam before the end of the month, will include a mix of new and existing shares, it said. CVC is seeking an IPO that would value the company at more than 10 billion euros, with the company placing about 10% of its share capital, one of the people said.

Reuters could not determine which of CVC’s outside shareholders – including Blue Owl, Singapore’s GIC, the Hong Kong Monetary Authority and the Kuwait Investment Authority – want to sell shares.

The private equity firm’s partners are not expected to sell shares as part of the IPO, the people said.

However, no final decision has been made and plans could be changed or dropped, they said.

Blue Owl, CVC, GIC and HKMA declined to comment. KIA did not respond to a request for comment.

CVC is sticking with the plans even though market conditions in recent weeks have caused other European companies to postpone IPOs, including German defense group Renk and French software company Planisware.

Street payment provider DKV Mobility, in which CVC has a minority stake, has decided to postpone its IPO plans due to volatile markets, Reuters reported earlier this month.

CVC is the latest European buyout group to attempt an IPO, following the lead of rivals such as EQT and Bridgepoint.

London-headquartered CVC, which manages assets of more than 160 billion euros, is aiming to transform into a diversified asset manager.

Last month the company announced a deal to acquire infrastructure operator DIF and struck a deal with secondaries manager Glendower last year.

The story goes on

Market conditions have made it difficult for private equity firms to raise new funds and sell existing investments, but CVC managed to weather the fundraising slump earlier this year when it launched the world’s largest buyout fund at €26 billion hung up.

It was widely reported that the company was valued at around $15 billion when it agreed to sell a minority stake in Blue Owl in 2021.

($1 = 0.9489 euros)

(Reporting by Pablo Mayo Cerqueiro and Anousha Sakoui in London; Editing by Elisa Martinuzzi and Barbara Lewis)