French cable operator Numericable has inaugurated the promotion of its planned Paris listing to potential investors, Reuters reports. According to the article, the first stage of the initial public offering (IPO) process involves two weeks of ‘investor education’, when analysts present their research to potential investors before the price range for the shares is set; order books are then opened for a further two weeks. Numericable could be valued at around EUR5 billion (USD6.78 billion), based on eight-to-nine times earnings before interest, tax, depreciation and amortisation (EBITDA) for 2012; the company generated EBITDA of EUR456 million, plus a further EUR181 million for its sister operation, the alternative fixed line operator Completel, which it acquired in 2007.
As previously reported by TeleGeography’s CommsUpdate, in September 2013 the company confirmed that it plans to list between 20% and 40% of its capital as part of an IPO, and registered its ‘core documents’ with the Autorite des Marches Financiers (AMF). Cinven and Carlyle, the private equity companies that currently own 37.5% each of Numericable, will reduce their stakes to provide liquidity to the IPO, while fellow shareholder Altice Group is expected to increase its current stake of 25% by ‘a few percentage points’. Deutsche Bank and JPMorgan are acting as the joint book-runners for the transaction.