Dutch cableco Ziggo has raised total gross proceeds of €925m (US$1.2bn) in its IPO, after the joint bookrunners fully exercised a greenshoe option to acquire additional shares in the company.
The overallotment shareholders had given the underwriting…
Dutch cableco Ziggo has raised total gross proceeds of €925m (US$1.2bn) in its IPO, after the joint bookrunners fully exercised a greenshoe option to acquire additional shares in the company.
The overallotment shareholders had given the underwriting banks a 15% overallotment option on the IPO, which allowed the banks to acquire up to 6,521,740 ordinary shares for the offer price of €18.50.
In a statement yesterday, Ziggo said that the joint bookrunners – Deutsche Bank, JP Morgan, Morgan Stanley and UBS – had fully exercised the option on behalf of the underwriting banks.
The overallotment shareholders include affiliates of private equity firms Cinven and Warburg Pincus.
The exercising of the greenshoe option means that Ziggo’s total free float is now made up of 50 million shares or 25% of the issued share capital.
This effectively values the company at €3.7bn (US$4.9bn).
The joint global coordinators for the IPO are JP Morgan and Morgan Stanley.
The joint bookrunners are Deutsche Bank, JP Morgan, Morgan Stanley and UBS.
ABN AMRO, HSBC, Nomura and Rabobank are the joint lead managers, with ABN AMRO and Rabobank also acting as joint retail bookrunners.
Societe Generale is a co-lead manager.
In a note today, Moody’s upgraded its corporate family rating for Ziggo up to Ba1 from Ba2 and also upgraded ratings on Ziggo’s 2017 and 2018 notes.
Moody’s said that the upgrade was based on three factors: Ziggo’s “solid” operating performance; the company’s policy of keeping a debt/EBITDA ratio of 3.5x in the long term; and its free cash flow generation, which Moody’s classed as “good”.
