KKR's Trainline announces intention to float

Kenny Wastell
22 May 2019

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KKR-backed online train tickets retailer Trainline has announced its intention to float on the London Stock Exchange.

Pricing details for the flotation are yet to be announced, though the company said in a statement that it expects to be eligible for inclusion in FTSE UK indices following admission. The business generated adjusted EBITDA of £53m from revenues of £210m in its most recent financial year, according to the statement, with its revenues having grown at a compound annual growth rate of 18% since 2016.

The proposed listing would include both new and existing shares, with the company aiming for a free float of 25% on admission and an additional 15% available via an overallotment option.

During the GP's four-year tenure, Trainline has expanded into Europe, in large part via its 2016 acquisition of France-based Captain Train. Captain Train was previously backed by Alven Capital, CM-CIC Capital Privé and Index Ventures, and all three reinvested a portion of their proceeds into Trainline as part of the deal.

Trainline had originally announced its intention to float under its previous owners Exponent Private Equity in 2015, though shortly afterwards it was announced that the business had been acquired by KKR.

Exponent bought Trainline in a £163m management buyout in 2006 from a consortium of shareholders including Virgin, Stagecoach and National Express. The following year, the company acquired Advanced Smartcard Technologies in a take-private valuing the business at £18.7m.

Today, the London-headquartered rail and coach ticketing company consists of three divisions: UK consumer, which sells coach and train tickets for UK travel; international, which sells coach and train tickets for European travel; and Trainline for business; which offers rail and coach booking services for SMEs, corporates and travel management companies, in addition to providing online e-commerce platforms for UK rail operators. It has additional offices in Paris and Edinburgh and has a total headcount of around 600.

JP Morgan and Morgan Stanley are acting as joint sponsors, joint global coordinators and joint bookrunners in the process. KKR Capital Markets is acting as joint global coordinator and joint bookrunner. Barclays and Numis Securities are acting as joint bookrunners.