Hilton Worldwide listing hopes to raise US$2.37 billion

PUBLISHED : Tuesday, 03 December, 2013, 9:24am
UPDATED : Wednesday, 04 December, 2013, 1:55am

Hilton Worldwide has said it could raise as much as US$2.37 billion in one of the year's biggest initial public offerings.

The hotel operator said in a regulatory filing on Monday that the offering of 112.8 million shares was expected to price between US$18 and US$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 initial public offering's proceeds at as much as US$2.72 billion.

The IPO comes as the hotel industry starts 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 the US this year as American 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 in the US, surpassing Twitter's US$2.1 billion haul last month. It would trail oil and gas pipeline company Plains GP, which raised US$2.9 billion in October. Depending on where it prices and if bankers buy up Hilton's extra stock, it could also best Pfizer's spin-off, Zoetis, which raised US$2.6 billion in January.

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

Hilton was taken private by The Blackstone Group, an investment firm, in October 2007 for US$20 billion. Blackstone will still own a majority of the shares eligible to vote in the election of board members, according to the filing. The recession began soon after Blackstone bought Hilton. Hotel operators were hurt by a drop in business travel, fewer holidaymakers, falling real estate prices and a general oversupply in the US market.

Hilton has 4,080 hotels, resorts and timeshare properties. Its brands include Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts and Hampton Inn.

The stock is expected to list on the New York Stock Exchange under the symbol HLT.