Six Nations investment fund targets €15bn valuation as it plans IPO

CVC also has a majority stake in the public relations firm Teneo which was founded by Irishman Declan Kelly in 2011. Picture: INPHO/Dan Sheridan

The private equity group CVC Capital Partners, which is known for its significant stakes in the Six Nations Championship and England’s Premiership Rugby, is targeting a market value of €15bn when it makes its initial public offering on Euronext Amsterdam later this week.

The company is offering shares at a price range of €13 to €15 with trading expected to begin on Friday this week.

Banks acting on the deal said on Monday morning that books for the IPO had been oversubscribed multiple times by investors, suggesting strong demand.

Assuming shares are priced at the midpoint, CVC and its shareholders will raise up to €1.8bn in proceeds through the sale of new and existing stock, according to a deal term sheet seen by Reuters.

CVC has been looking to launch an IPO since at least 2022 with previous attempts buffeted by volatile markets. A previous attempt in November failed due to unfavourable market conditions.

Since then, Europe has seen a string of companies go public, taking advantage of higher stock prices and improving investor sentiment.

Spanish beauty group Puig is currently attempting an IPO in its home market.

New listing performance, however, has been mixed. Last month Galderma saw its shares soar on its market debut, while CVC-backed perfume retailer, Douglas, traded below its issue price.

CVC has about €186bn of assets under management. It was originally part of the lender Citigroup.

In 2021, CVC paid £365m (€428m) for a 14.25% stake in the Six Nations alongside the six rugby nations. It already held a 27% stake in England’s Premiership Rugby, paying over £200m in 2018.

In addition, it also has stakes in companies such as Swiss watchmaker Breitling and Lipton Teas and Infusions. It also has a majority stake in the public relations firm Teneo which was founded by Irishman Declan Kelly in 2011.

Reuters