SYDNEY, May 3 (Reuters) - Private-equity firm KKR is seeking to raise A$352 million ($271.36 million) in the initial public offering of its majority-owned pub group Australia Venue Co. (AVC), according to a memo seen by Reuters.
The raising will be in exchange for a minority stake in one of Australia’s largest pub companies, in a deal valuing the group at A$903 million, according the document sent to investors on Monday.
Representatives for KKR and Australia Venue declined to comment.
KKR’s current 80% ownership will be significantly diluted as the firm does not intend to sell any shares, a source with knowledge of the deal added, declining to be identified as the person could not speak publicly.
According to the document sent to investors on Monday, shares in AVC, which operates a network of 175 pubs, bars and venues across Australia and New Zealand, are being offered at A$2.33 per share, equivalent to about 15 times forecast 2022 earnings.
It follows domestic private equity firm Crescent Capital Partners seeking to raise A$408 million in the IPO of its pathology provider Australian Clinical Labs, adding to the already four-fold increase in public offerings in the first quarter.
KKR, Citigroup and Goldman Sachs are managing AVC’s raising and will run a bookbuild for institutional investors on Monday May 10. Proceeds from the raising will be used to repay existing debt facilities, including a loan to KKR and to redeem convertible notes, the document showed.
The company expects to file a prospectus with the corporate regulator on May 11, open the share offer to retail investors on May 19, and debut on the exchange on May 27, the document added.
$1 = 1.2972 Australian dollars Reporting by Paulina Duran in Sydney; Editing by Louise Heavens