Presidio Planning to File for IPO as Soon as This Week Source
November 21 2016 - 7:10PM
Dow Jones News
Presidio Holdings Inc. plans to file for an initial public
offering as soon as this week, moving the information-technology
services firm closer to a public debut expected to value it at as
much as $3 billion, including debt, according to a person familiar
with the matter.
The New York company tapped J.P. Morgan Chase & Co. and
Citigroup Inc. to lead the offering, which would likely take place
next year, the person said.
Presidio, owned by private-equity firm Apollo Global Management
LLC, provides technology consulting, purchasing and support
services to businesses. Apollo bought the company from American
Securities LLC, another private-equity firm, in February 2015 and
has since helped it grow through acquisitions.
A Presidio debut would come during the slowest IPO market since
the financial crisis. So far this year, 104 companies have gone
public in the U.S. raising $22 billion, the lowest dollar volume in
any comparable period since 2003, according to Dealogic.
It has been a similar story for companies backed by
private-equity firms, which sold a record $34.2 billion worth of
stock in U.S. IPOs in 2014 but just $9.7 billion so far this year.
Some big buyout firms' portfolios have thinned, leaving them with
less to sell. Some have opted to sell companies to their peers or
corporate buyers, both of which have large amounts of cash to
invest.
Market participants say public listings could pick up next year,
in part due to the strong share performance of companies that have
gone public recently. Shares of technology companies that went
public this year have popped an average 30% on their first day of
trading, according to Dealogic.
Stock investors have warmed to IT service providers, like
Presidio. Shares of CDW Corp. are up about 15% over the past year,
while Computer Sciences Corp.'s stock has more than doubled.
Maureen Farrell contributed to this article.
Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com
(END) Dow Jones Newswires
November 21, 2016 18:55 ET (23:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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