This Week’s Scheduled IPOs: Hilton, Valero, Cheniere, Aramark
The most anticipated has to be the IPO of Hilton Worldwide Holdings Inc., which has moved its pricing date up to Wednesday and is scheduled to begin trading on Thursday. The company plans to sell 64.1 million shares and selling shareholders will sell 48.7 million shares. Blackstone Group LP (NYSE: BX) bought the hotel chain out of bankruptcy for $25 billion in 2007, just before the financial crisis struck. The private equity firm has had to borrow about $14 billion to complete the deal, but will receive no proceeds from the sale other than those it will pass along to the selling stockholder, Hilton Global Holdings LLC, which will hold no stock in Hilton Worldwide following the IPO. Hilton Worldwide will trade on the NYSE under the ticker symbol “HLT.”
Valero Energy Corp. (NYSE: VLO) on Monday commenced an IPO of a logistics group called Valero Energy Partners LP, announcing plans to sell 15 million common units of the master limited partnership (MLP) which represents a stake of about 25.5% in the MLP. Underwriters have a 30-day option on an additional 2.3% of the new company’s common units and, if all are taken, public ownership of Valero Energy Partners will total 29.4%. The new company’s stock will trade on the NYSE under the ticker symbol “VLP.” Valero Energy Partners will get mid-stream assets in Sunray, Texas; Memphis, Tennessee; and Port Arthur, Texas. The shares are expected to price Tuesday night.
Cheniere Energy Inc. (NYSEMKT: LNG) expects to raise about $600 million in an IPO for Cheniere Energy Partners LP Holdings of 30 million shares in a price range of $19 to $21 a share. At the close of the offering the new firm will own a limited-partner stake of 55.9% in Cheniere Energy Partners LP (NYSE: CQP), in which Cheniere Energy owns a 55% stake. According to the Cheniere Holdings’ Form S1/A filing, “Cheniere Holdings was formed to hold the Cheniere Partners limited partner interests that are owned by Cheniere [Energy], thereby allowing Cheniere to segregate its lower risk, stable, cash flow generating assets from its higher risk, early stage development projects and marketing activities.” The new company’s stock will trade on the NYSE MKT under the ticker symbol “CQH.”
ARAMARK Holdings Corp. is expected to price an ipo for 36.3 million shares between $20 and $23 on Wednesday, planning to raise about $779 million and valuing the company at $5.3 billion. The firm was taken private in 2006 by the company’s chairman and an investor group including a number of private equity funds. The company, which provides food services, facilities, and uniforms, claims revenues of $13.9 billion in the past 12 months and plans to trade on the NYSE under the ticker symbol “ARMK.”