Originally published at www.seclive.com
Hilton Worldwide, Inc. plans to raise as much as $2.37B in an initial public offering that could be made before the end of the year, which if done before year's end would mark the largest-ever hotel IPO and potentially the second-largest IPO for the year. The hotel chain, which operates in 90 countries, with 4,041 hotels totaling 665,667 rooms, is selling 64.1 million shares priced between $18.00 and $21.00 per share. Should underwriters execute the additional 16.9 million shares authorized, the IPO could top $2.72B. The offering represents around 11.5% of the company and the company has stated it intends to use the proceeds to pay down $1.25B in debt. Blackstone Group (NYSE:BX), which owns Hilton, appears to be taking advantage of a strong IPO market with low interest rates in an effort to cash in on its investments.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.