Development Company is likely to be
one of the main benefactors in the initial public offering (IPO) announced on
Tuesday by US-based private equity company Carlyle Group.
Washington-based firm filed for an IPO on Tuesday, a long-awaited move to catch
up with rivals Blackstone, KKR and Apollo.
the volatility of global markets means an offering is unlikely until the first
half of 2012, the Abu Dhabi-owned investment fund Mubadala,
which bought a 7.5 percent stake in 2007, is likely to be one of the
benefactors of the move.
which in December invested a further $500m in Carlyle, could see its stake in
the firm rise to as high 19.9 percent and is rumoured to be in line for a
seat on the buyout firm’s board if the IPO is successful.
it could be a difficult road ahead: the US IPO market has struggled as concerns
about Europe's debt crisis and a weak recovery in the US have made markets
volatile. A number of deals were withdrawn last month.
is going to be pricing pressure for this deal, given the weak demand for
financial IPOs and the performance of the listed companies," said Josef
Schuster, founder of Chicago-based IPO research and investment house IPOX
market conditions and the poor performance of other listed private equity
companies like Blackstone Group and Apollo Global Management, and the complex
listing of Kohlberg Kravis Roberts & Co, may also damp investor appetite.
filing, with the US Securities and Exchange Commission, lists an offering size
of $100m, but that may be a placeholder amount. Sources said in June the
offering could be as large as $1bn.
the terms of the filing, Mubadala will be able to avail of a 7.5 percent
discount on the IPO price when the flotation is initiated early next year.
spokesperson from Mubadala told Arabian Business it was “not in a position to
provide any comment during Carlyle’s registration process” and declined to
comment on speculation regarding a seat on the firm’s board, the timing of the
IPO or how much of a stake Mubadala will seek.
Continued on next page...