Kevin Dowd August 25, 2016
Clayton, Dubilier & Rice could hold a US initial public offering as early as September for Mauser, a German provider of industrial packaging materials, according to a Bloomberg report. The offering on the NYSE under the ticker symbol MSR could value Mauser at $2 billion, which would make the transaction one of the most notable this year for an IPO market that’s been unusually barren—particularly when it comes to 10-figure valuations.
Across North America and Europe, just 42 PE-backed companies have conducted public offerings so far in 2016, according to the PitchBook Platform, and just five of those companies have registered a post-valuation of $2 billion or more. Like Mauser, many of the most successful IPOs of the year have been for companies based in Europe. Of the 13 businesses valued at $1 billion or more in their public-market debut, seven are European, including DONG Energy (a Danish business valued at about $15 billion) and the UK-based Countryside Properties.
Compared to recent years, those are pretty paltry figures. A total of 105 PE-backed companies went public during 2015, including 33 that were valued at more than $1 billion. In 2014, meanwhile, 169 PE-backed companies took the public plunge, a whopping 64 of which were valued in the 10-figure range.
Here’s a fuller look at the recent history of IPOs for PE-backed businesses based in North America and Europe:
The larger question regarding a possible Mauser IPO—as is always the case these days with such news—is what it bodes for the larger IPO market moving forward, and whether a successful entry to the public markets could lead to a flood of activity in a market that’s been dammed for most of the past year by untoward conditions.
A host of big-name, PE-backed companies still waits in the wings after postponing or withdrawing planned IPOs, including Univision, Neiman Marcus and Albertsons.