PE-backed Argus Media explores potential 2022 IPO

The London-based company, which helps assess global oil prices and provide industry news, met advisers before the Christmas break to discuss a prospective listing, two of the sources said. No advisers have been appointed yet, they added, for a deal that could value the information data provider at more than GBP 2bn.

A listing of sponsor-backed Argus could take place later this year, the sources said. CEO Adrian Binks, who owns 45% of the business, is also likely to assess another round of private equity investment, the third source added.

There have been several deals involving financial information companies in the last couple of years, providing impetus for Argus shareholders General Atlantic and Hg to exit while the market remains attractive, one source added.

Mergermarket reported last February that New York-headquartered General Atlantic could agree an exit with management ahead of a 2023 lock-in expiry given investor appetite and robust valuation multiples for B2B information businesses, with an IPO or a minority stake sale deemed possible exit avenues.

Should Argus go ahead with an IPO, there is rationale to list the business in the US where valuation multiples in the B2B information sector are higher than in Europe, a sector banker said.

Listed comparable companies for Argus include FactSet, S&P Global, Informa, Relx, Euromoney and Morningstar, as previously reported by Mergermarket. The six peers trade at an average prior year (2020 or equivalent) EV/EBITDA multiple of 26.2x, according to data provided by Fidessa and compiled by FactSet.

This implies Argus could be valued at around GBP 2.4bn (EV/EBITDA multiple), based on its last reported financials for the year ending on 30 June 2021. Argus posted adjusted EBITDA of GBP 92m in 2021, according to S&P Global Ratings. Revenues were broadly in line with 2020 despite the pandemic, according to S&P, driven by 4% growth in the group's recurring revenues from subscription renewals.

Public market investors would likely value Argus more highly than private ones, while the company's subscription services, recurring revenue and high customer retention rate would make it an ideal IPO candidate, as reported.

General Atlantic sold half of its 50% stake in Argus to buyout group Hg in 2019, valuing the company at more than GBP 2bn.

Argus Media, General Atlantic and Hg declined to comment.

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• Topics
• Exits
• Media
• UK / Ireland
• HgCapital
• General Atlantic
• Mergermarket
• IPO