Hilton could raise $2.4B, among year's biggest IPOs

Associated PressDecember 2, 2013 

— Hilton Worldwide Holdings said Monday that it could raise as much as $2.37 billion, making it one of the year’s biggest IPOs.

The hotel operator said in a regulatory filing that the offering of 112.8 million shares is expected to price between $18 and $21 each. Hilton is offering about 64.1 million shares, and selling shareholders are offering 48.7 million shares. Selling additional shares to banks could put the IPO’s proceeds at as much as $2.72 billion.

The initial public offering comes as the hotel industry has started to recover over the past two years from its battering during the recession and as the IPO market heats up. Roughly 200 companies have gone public in 2013 as markets hit record highs.

If it prices above the middle of the expected range, Hilton will have the second- or third-largest IPO this year, surpassing Twitter’s $2.1 billion haul last month. It would trail oil and gas pipeline company Plains GP Holdings LP, which raised $2.9 billion in October. Depending on where it prices and whether bankers buy up Hilton’s extra stock, it could also best Pfizer’s spinoff, Zoetis, which raised $2.6 billion in January.

But assuming shares price at $19.50, the middle of the range, Hilton anticipates net proceeds of about $1.21 billion, which it plans to use to repay debt. That price would give the McLean, Va.-based company a value of about $19.2 billion.

Hilton was taken private by The Blackstone Group, an investment firm, in October 2007 for $20 billion. Blackstone will still own a majority of the voting power of shares eligible to vote in the election of board members, according to the filing.

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