Apollo Global Management LLC said Monday it was planning an initial public offering that could raise up to $500 million, in the latest move by a private equity firm to go public.
Apollo's debut has been on hold for a long time. The buyout shop had initially planned to go public in April 2008, but delayed the IPO because of the financial crisis.
Rival KKR & Co. LP, the parent company of Kohlberg Kravis Roberts, listed on the New York Stock Exchange last July; it had also delayed its deal because of the financial crisis. KKR shares are up nearly 60 percent since then.
Blackstone Group LP raised $4.1 billion in its IPO in June 2007, with shares selling for an initial price of $31 each. That deal opened the door for private equity firms seeking public offerings. But Blackstone quickly fell out of favor with investors, giving pause to others who wanted to follow. The stock traded at $17 on Monday.
The IPO market has improved for private equity firms. Apollo and other firms are having an easier time selling their companies back to the public this year as the economy recovers. While nearly half of such companies last year priced below the ranges underwriting banks had set, analysts say three blockbuster IPOs this year have helped improve prospects for other private-equity backed deals.
Hospital operator HCA Holdings Inc. raised $3.79 billion this month, the most ever by a company taken public in the U.S. by a private equity firm. That deal topped the previous records set earlier this year by consumer ratings company Nielsen Holdings NV, which raised $1.9 billion in a January IPO, and pipeline operator Kinder Morgan Inc., which raised $2.86 billion in February.
Apollo said it and its stockholders plan to sell 26.3 million shares for $17 to $19 each _ 18 million from Apollo and 8.3 million from stockholders. The company will sell 3.9 million extra shares if there is high demand for the stock.
The firm says it expects its own proceeds from the IPO to be about $296.6 million after expenses if shares price at $18, which it will use for general corporate purposes.
Apollo will not receive proceeds from stockholders' sales. The company said none of its management or employees is selling their stock in the IPO.
The company expects to list the shares on the New York Stock Exchange under the symbol "APO." Scott Sweet, an IPO analyst who owns IPO Boutique, said he expected Apollo's stock to debut on March 30.