CVC-backed Avast to list in £2.4bn IPO

Nicole Tovstiga
10 May 2018

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Czech cybersecurity software developer Avast, backed by CVC Capital Partners, has priced its IPO on the London stock exchange at the bottom end of the indicative range.

The offering, which represents 25.3% of the company's total shares, is valued at £602m, including gross primary proceeds of £147.4m. This would equate to a market cap of £2.379bn, short of the initial estimates of £2.5-3.2bn.

An overallotment option has been set to 15% of the total number of shares in the offer, or 36,118,935 shares, equating to proceeds of £90.3m.

Trading commenced on 10 May on the premium listing segment of the stock exchange for conditional dealings, with admission to the main market of the London Stock Exchange expected on 15 May for unconditional dealings.

Shares were trading at 240.45 pence at the time of publishing.

Following the listing, CVC retains a stake of 22.7% in Avast via its holding company Sybil Holding. The company's founders Pavel Baudiš and Eduard Kučera hold a 37.5% stake, while Summit Partners will keep a 5.7% stake in Avast, assuming the over-allotment option is not exercised. Other shareholders including management, directors and employees will hold around 8.8% of the company's shares.

Previous funding
Summit Partners invested $100m in growth capital for a minority stake in the Czech software vendor in August 2010.

CVC backed Avast in a deal that valued the business at $1bn in February 2014. The investment underpinned the company's reach in the mobile security space and its expansion into the US and Asia. Credit Suisse, UBS and Jefferies provided financing to support the company, including further resources for investments and acquisitions. Summit Partners remained a shareholder alongside the firm's founders, Pavel Baudiš and Eduard Kucera.

Company
Founded in 1988 and headquartered in Prague, Avast develops antivirus software for computers and mobile devices. The firm produces free software for PC, Mac and Android as well as premium services for consumers and businesses. According to the company, it has 435 million users worldwide as of 31 December 2017, including 290 million personal computer software users, and 145 million mobile users.

People
Avast – Vince Steckler (CEO).
CVC Capital Partners – Lorne Somerville (managing partner).