TPG, the massive private-equity firm whose holdings include CAA and DirecTV, has set the price of its initial public offering at $29.50 per share, offering 33,900,000 shares of Class A common stock.
Per TPG, the shares are set to begin trading under the symbol “TPG” on the Nasdaq Global Select Market on Thursday. TPG’s IPO is expected to close Jan. 18, subject to conditions.
“Of the offered shares, 28,310,194 shares are being offered by the Company and 5,589,806 shares are being offered by an existing strategic investor pursuant to a registration statement filed on Form S-1 with the Securities and Exchange Commission (the ‘SEC’),” TPG said in a press release Thursday. “The underwriters will have a 30-day option to purchase an additional 3,390,000 shares of common stock, consisting of 1,775,410 shares from the Company and 1,614,590 shares from the existing strategic investor.”
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Last month, TPG proposed in its IPO filing to raise $100 million, but that’s with the caveat that the figure is only an estimate used to calculate the registration fee.
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In its S-1, TPG said it had $109.1 billion in assets under management as of Sept. 30, 2021, up 81% since 2016. Overall, TPG has investments in more than 280 companies. The company’s entertainment investments have included CAA, DirecTV, Entertainment Partners, Fandom, Spotify, STX Entertainment, Univision and Vice Media. CAA, for its part, in September announced plans to acquire ICM Partners.
According to TPG’s Thursday announcement, “TPG intends to use approximately 40% of the net proceeds to purchase partnership interests in the TPG operating entity from other existing strategic investors, and the remaining net proceeds it receives to pay offering and reorganization expenses and for general corporate purposes, which may include facilitating the growth of TPG’s existing business and/or expanding into complementary new lines of business or geographic markets. TPG will not receive any proceeds from the sale of shares by the existing strategic investor.”
When filing for IPO in December, TPG said that for the nine months ended Sept. 30, 2021, total revenue was $3.9 billion, including $685 million in fee-related revenue (a non-GAAP measure). That’s compared with net revenue of $564 million in the comparable period in 2020, which included a negative $94.7 million in capital allocation-based income.
As of the end of September, TPG had cash and equivalents of $1.78 billion and $1.29 billion in assets held in trust. Total debt amounted to $245 million, while the company reported $1.29 billion in redeemable equity from consolidated public SPACs (special purpose acquisition companies).
The company (originally known as the Texas Pacific Group) has 912 employees, including more than 320 investment and operations professionals. Based in Fort Worth, Texas, TPG is led by CEO Jon Winkelried, who became sole CEO in 2021 after serving as co-CEO since 2015 with co-founder Jim Coulter, who moved into an executive chairman role. TPG co-founder David Bonderman serves as non-executive chairman.
For the IPO, JP Morgan Securities, Goldman Sachs & Co., Morgan Stanley and TPG Capital BD, are acting as joint lead book-running managers.