TPG launches IPO roadshow for $9.5 billion valuation

The firm and some of its shareholders are targeting to sell shares for between $28 and $31, it said in a regulatory filing Tuesday. It plans to trade on the Nasdaq under the ticker symbol “TPG”.

TPG, based in Fort Worth, Texas and San Francisco, plans to price its offering next Wednesday and list the shares the next day, though timing may change, according to people familiar with the matter.

The Wall Street Journal first reported in June that TPG was in the early stages of weighing up a public listing that could be valued at around $10 billion.

TPG aims to sell 28.3 million shares in the offering, of which 13.6 million will be used to buy shares from existing shareholders, while China Life Trustees Ltd plans to sell 5.6 million shares, according to the filing.

TPG’s offering is set to be the first major IPO of 2022, and its performance will help investors, bankers and other companies gauge the health of the IPO market. Last year, traditional IPOs raised more than $150 billion in the US, according to Dealogic.

But despite the record jump, IPO performance picked up in the last weeks of the year. By the end of December, nearly two-thirds of newly listed companies were trading below their IPO prices.

Shares of publicly traded private-equity firms have declined of late, thanks to a rising market. Lower interest rates have also made borrowing cheaper and prompted yield-hungry investors to pour hundreds of billions of dollars into firms’ coffers.

The group’s strong performance has prompted it to list other shares, including European private-equity firm Bridgepoint Group plc and Blue Owl Capital Inc., which was created last year through a merger with a special-purpose acquisition firm.

With $109 billion in assets under management and offices worldwide, TPG has been one of the original buyout giants to remain a private partnership. Along with the IPO, it was Blackstone Inc., Apollo Global Management Inc. and will be joined by peers like KKR & Co, which have been public for years.

Unlike firms that retained their partnership structure for several years after their IPO before transitioning to a C-Corporation following the 2017 tax cut, TPG will start out as a corporation called TPG Inc. The decisions to convert by its rivals have contributed to the recent surge in their valuations over the past few years.

TPG is smaller than many of its competitors, having built huge businesses investing in sectors including credit, real estate and insurance. But the IPO should fuel it to expand its already largely devoted to private equity, investing in fast-growing companies, socially responsible investing, real estate and sectors like SPAC and public companies. should be commensurate with the investment opportunities.

TPG is building a business dedicated to buying secondhand stakes in private-equity funds, known as secondary. It said on Tuesday that it has hired a co-managing partner for that business to lead its European operations.

The offering was led by JPMorgan Chase & Company, Goldman Sachs Group Inc. And Morgan Stanley is doing it.

This story has been published without modification to the text from a wire agency feed