Cushman & Wakefield Sets IPO Price Between $16 And $18

Real estate services firm Cushman & Wakefield announced this week its plans for shares in its initial public offering (IPO) to sell for $16 to $18 each in a regulatory filing, reports The Wall Street Journal.

The company expects to net proceeds of $719.3 million from the 45 million share offering, based on the range’s midpoint. Cushman & Wakefield gave Morgan Stanley, J.P. Morgan, Goldman Sachs and UBS the option to buy up to 6.75 million shares. The IPO’s total proceeds could reach $931.5 million if it is fully exercised.

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.

The company will trade under the ticker CWK on the New York Stock Exchange.

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