Auto Trader IPO nets Apax £926m

Auto Trader Group (formerly known as Trader Media Group) offered 590,000,000 new and existing shares in its IPO on the London Stock Exchange, equivalent to a 59% stake in the business. The company reaped £437m from the listing, with Crystal Holdco (controlled by Apax) making gross proceeds of £926m.

The market capitalisation of £2.35bn is equivalent to around 17x EBITDA. The company will start trading on 24 March.

Auto Trader will use the proceeds to pay down £1bn of debt, including £632m worth of senior bank loans, £358.4m of junior debt and £32.8m in early repayment premiums and interest payable on both senior and junior debt.

Apax is subject to a one-year lock-up for its remaining stake in the business. Crystal Holdco will hold 34% of the company's shares following the IPO, compared with 73% prior to the listing.

Previous funding
Apax picked up a 49.9% stake in Guardian Media Group's Trader Media Group for £675m in 2007, valuing the company at £1.35bn. The GP acquired a further 50.1% stake in the business from Guardian Media Group in early 2014, securing full control of the company. The deal was, at the time, believed to have valued the group at £1.75bn.

Apax had refinanced the business in 2011, taking home a £140m dividend.

Company
Established in 1977, Auto Trader has moved away from traditional publishing in recent years to focus exclusively on its online car auction business. The group operates the Auto Trader platform, which allows users to buy both new and used vehicles.

The group generates revenues of £237m, with an EBITDA of £140m.

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