Nine IPO expected to raise $600m

Nine's advisers complete sales facility for existing shareholders.

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.

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