First Data Corp., the Atlanta-based payments technology giant owned by private equity firm KKR, this morning unveiled plans for what could be the year’s largest initial public offering.
First Data said it plans to offer 160 million shares at between $18 and $20 per share. In the middle of that range, the company would raise around $3 billion and have an initial market cap north of $16 billion. Its total enterprise value would be around $37 billion, once its $21 billion of debt is included (minus any IPO proceeds used to pay down debt).
So far this year, only two companies have raised at least $1 billion in their IPOs — Tallgrass Energy (TEP) and Columbia Pipeline Partners (CPPL) — but neither even hit $1.5 billion, let alone $3 billion.
First Data reports a $30 million net loss on $5.57 billion in revenue for the first half of 2015, compared to a $142 million net loss on $5.48 billion in revenue for the year-earlier period. The losses are essentially tied to interest payments on the company’s outstanding debt. In the first half of this year, those payments totaled $813 million.
KKR (KKR) originally acquired First Data in 2007 for around $28 billion, and last summer doubled down on its investment — giving it more exposure to the payments company than to any other investment.
First Data plans to trade on the NYSE under ticker symbol FDC, with Citigroup (C) listed as left lead underwriter.
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