The expected outcome of Nine Entertainment Co's float is clarifying, with analysts forecasting the initial public offering (IPO) will yield the company and its owners about $600 million, according to The Australian Financial Review.
Nine's investment banking advisers completed a sales facility for existing shareholders to sell into the float on Wednesday, which was expected to raise about $325 million, the AFR reported.
An additional $275 million is expected to be raised through new shares, the proceedings of which will be used towards Nine's $880 million in net debt.
The indicative price range for new investors will fall between $2.05 and $2.35 per share, putting Nine's market capitalisation at about $1.9 billion and $2.2 billion.
Oaktree Capital is expected to sell between 20% and 40% of its 28% stake in Nine as part of the float, while Apollo Global Management plans to retain its entire 26% stake, the AFR added.