Nine IPO to seek $1.2bn: report

Nine Entertainment Co hopes to raise up to $1.2 billion through its initial public offering (IPO), and is nearing a deal with banks to handle the float on the Australian Securities Exchange (ASX), according to The Australian.

The broadcaster hopes to float by the end of 2013 and is targeting between $800 million and $1.2 billion, the report added.

Nine's owners, hedge funds Apollo and Oaktree, could sell down up to half of their holdings in the float.

The two funds own 95.5% of Nine, as a result of a $3.4 billion recapitalisation a year ago.

Nine's debt stands at about $900 million, and some of the IPO funds will likely be used to pay the debt down, The Australian added.