Adam Lewis April 17, 2017
The recent uptick in private equity-backed IPOs looks poised to continue, as Emerald Expositions and Floor & Decor have announced anticipated price ranges for their respective IPOs.
Trade-show operator Emerald Expositions (fka Nielsen Expositions) has announced plans to raise $295 million in an IPO that will offer 15.5 million shares for between $18 and $20 each. A midpoint pricing would give the company a diluted market value of some $1.4 billion. That would mark a win for Toronto-based Onex, which purchased the company for $950 million in cash from Nielsen (NYSE: NLSN) in 2013. Emerald Expositions plans to trade on the NYSE under the symbol EEX.
In a separate development, Floor & Decor, a hard-surface flooring and tile retailer, has established a range of $16 to $18 per share. Offering 8.8 million shares on the NYSE under the FND ticker symbol, the company expects to net proceeds of about $133.5 million from the offering, which it plans to put toward repaying debt. Floor & Decor has been backed by Ares Management (67.6% pre-IPO-stake) and Freeman Spogli & Co. (24.6%) since 2010. The company previously filed for an IPO in 2014 before withdrawing it last year.
The announcements come amid a rebounding IPO market, at least where PE firms are involved, with 15 PE-backed IPOs completed so far this year. Since peaking with 78 PE-backed US IPOs in 2014, that number dropped dramatically to 44 in 2015 before bottoming out with 32 in 2016, according to the PitchBook Platform. That total marked the lowest number since 2009, when a mere 27 PE-backed IPOs were conducted in the immediate aftermath of the financial crisis.
Want to know more? PitchBook subscribers can check out the full data on the past decade's worth of PE-backed IPOs right here.