Ziggo expands IPO to meet demand
March 19, 2012
Ziggo, the Dutch cable company owned by Warburg Pincus and Cinven, is adding to stock available through its IPO after the order books were filled in one day.
Ziggo has increased the number of shares it will offer at €16.5 to €18.5 each, with proceeds of as much as €804 million going to the private- equity owners and other shareholders. The top end of the range would give the company an estimated enterprise value of about 7.4 times projected 2012 earnings, according to reports.
The IPO will probably be priced at the high end of the range because of demand for the stock. Ziggo is the largest cable-television operator in the Netherlands with an estimated network coverage of 56 per cent of the country’s easily connectable homes at the end of last year, according to its prospectus. It offers TV, digital pay TV, high- speed broadband Internet and telephone services. Its main strategy is to offer packages of services at a lower price than customers would pay for the individual service subscriptions.