German cable company Kabel Deutschland has initiated plans for an IPO that is expected to be Europe's largest in over two years.
The company intends to sell 45 million shares – or 51.75 million if demand is strong – FT.com said.
Estimates of the result vary wildly. Wall Street Journal cited sources estimating that the deal will value the company at €2.5 billion. By contrast, FT.com said the sale could raise Kabel Deutschland €700 million, resulting in a €5 billion company valuation.
Kabel Deutschland has been considering an IPO since February, after it abandoned plans to sell the company to individual investors amid doubts bidders could finance the purchase price.
Providence is expected to maintain a majority stake in Kabel Deutschland after the IPO – it currently has a holding of around 88%.
The indicative price range should be announced between today and Friday, with the offer period starting within days of this announcement.
The IPO is being managed by Deutsche Bank, Morgan Stanley, JPMorgan, UBS, BNP Paribas, Societe Generale and RBS.