Hotelbeds questions banks about IPO sources worth more than $1.1 billion

Tourists sunbathe and swim by the pool amid the fourth heat wave of the summer in Santa Cruz, Canary Islands, Spain, August 22, 2023. REUTERS/Nacho Doce/File Photo Acquire LICENSE RIGHTS

LONDON, Sept 18 (Reuters) – Hotelbeds is interviewing banks to lead the sale of more than 1 billion euros ($1.07 billion) of shares in an initial public offering (IPO) next year, sources said People familiar with the matter told Reuters.

The Spanish travel technology company advised by Evercore (EVR.N) is ready to appoint several banks alongside Morgan Stanley (MS.N) as global coordinators after recently inviting pitches, said the people, who spoke on condition of anonymity.

The company and its shareholders – which include private equity funds Cinven and EQT (EQTAB.ST) and Canadian pension plan CPP Investments – are leaning towards Madrid as their preferred listing venue, one of them said.

Cinven, CPP Investments, EQT, Evercore and Morgan Stanley declined to comment. Hotelbeds did not immediately respond to a request for comment.

The consultations are still preliminary and the plans could still be changed or dropped, people warned.

Hotelbeds shareholders had considered a private sale as an alternative to an IPO, it said.

The listing plans highlight improving investor sentiment toward new stocks after months of subdued activity. Should it go public in Spain, Hotelbeds would be one of the largest IPOs the country has seen in recent years.

The Mallorca-based company Hotelbeds offers travel agencies, airlines and tour operators access to hotel rooms worldwide in a so-called “bed bank”.

The tourism industry has experienced a boost since governments lifted travel restrictions following the COVID-19 pandemic.

Hotelbeds said it recorded its best-ever two-week booking revenue earlier this year, with one booking per second at peak times.

($1 = 0.9352 euros)

Reporting by Andres Gonzalez and Pablo Mayo Cerqueiro in London; Edited by Anousha Sakoui and Nick Zieminski

Our standards: The Thomson Reuters Trust Principles.

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Andres Gonzalez covers M&A for Reuters, based in London. With over 12 years of experience as a correspondent in Spain, he has reported on various sectors including banking, TMT, energy, infrastructure and real estate. Andres has also covered major current news events such as the Barcelona attacks and several general elections, demonstrating his versatility and ability to handle critical and time-sensitive stories. Andres’ journalistic career began at Reuters in Spain, where he honed his expertise in financial reporting. Looking for new challenges, he ventured into the world of public relations and worked for Banco Santander with a particular focus on wealth management and investment banking. His experience in both journalism and PR has given him a comprehensive overview of the financial industry. Contact: +34636287872

As part of Reuters’ deals team, Pablo covers equity and debt capital markets transactions across Europe, the Middle East and Africa, from initial public offerings to buyout financings. Previously he worked at Mergermarket, Euromoney and Spanish digital media. Contact: +447721821589