Hilton Worldwide wants to raise $2.37 billion with its initial public offering later this month, Reuters reports.
If the hotelier’s IPO succeeds, that amount would be twice as much as owner Blackstone Group’s investment. Blackstone acquired Hilton in 2007 for $26.7 billion, including debt. It has since invested about $6.8 billion in the hotel operator. Blackstone’s 76.2% stake after the IPO will be worth up to $15.7 billion. None of its shares will be sold in the IPO.
According to a filing with the SEC, Hilton plans to offer 112.8 million shares between $18 and $21 per share, giving the company an equity value $20.7 billion. Hilton will sell 64.1 million shares in the IPO, with shareholders offering another 48.7 million shares.
… Blackstone's plans for an IPO of Hilton come as private equity firms sell or list assets to take advantage of a surging IPO market that has been spurred by a market rally and low interest rates that have encouraged investors to buy stocks. … Another Blackstone-backed hotel company, Extended Stay America Inc., raised about $565 million last month.