After much deliberation about what real services firm Cushman & Wakefield would price its initial public offering (IPO) at, the company announced on August 1 the price would be $17 a share, MarketWatch reports.
Cushman & Wakefield plans to sell at least 45 million shares at this price, would bring in at least $765 million at a valuation of $3.13 billion. Underwriters that include Morgan Stanley, JP Morgan, Goldman Sachs and UBS have access to an additional 6.75 million shares in the event of an over allotment. The IPO’s total proceeds could reach $931.5 million if it is fully exercised. The company’s shares are anticipated to begin trading on August 2 on the New York Stock Exchange. Cushman Wakefield’s ticker symbol will be CWK.
The news comes after initial reports the company had set its IPO price between $16 and $18.
TPG Capital leads a private equity firm that currently owns Cushman & Wakefield. The company combined that firm with DTZ and Cassidy Turley to build its global real estate superpower. The group paid approximately $3.5 billion to purchase the three firms. The investor group, which also includes PAG Asia Capital as well as the Ontario Teachers’ Pension Plan Board, plans to control 70% of the company’s once it goes public.
Backers are taking Cushman & Wakefield public when its industry counterparts like CBRE Group, Inc. and JLL have been trading near record highs, according to The Wall Street Journal. The company’s debt is currently $3 billion, which it plans to pay down with the proceeds from the IPO. As an example, the company stated in its filing it would repay the $470 million balance of second lien loan with an 8.87% interest rate.
Cushman’s reported net loss in 2017 was $221 million and it had a $92 million loss in the first quarter of this year, per regulatory filings. Some of the expenses for the quarter included $65.7 million for integration and acquisition costs.