KKR-backed Trainline sets IPO pricing

Francesca Veronesi
21 June 2019

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Following the intention-to-float announcement on 29 May, Trainline has announced the pricing of its initial public offering at 350 pence per share.

Based on the offer price, Trainline's market capitalisation will be approximately £1.682bn at the commencement of conditional dealings on the main market of the London Stock Exchange.

The offer comprises 32,000,000 new shares issued by the company to raise gross proceeds of £110m and 240,000,000 shares being sold by the selling shareholders, equating to a total offer size of £951m and representing 56.5% of Trainline's issued share capital on admission.

In addition, a further 41,000,000 shares in the company are being made available by KKR, pursuant to the overallotment option. If exercised in full, it would increase the number of shares in public hands to 312,000,000 shares in total and 65% of Trainline's issued share capital.

Immediately following admission, the company's issued share capital will be 481,000,000 shares.

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.

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.

Previous funding
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.

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.

Company
Trainline is a rail and coach ticketing company consisting 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.

People
KKR – Philipp Freise (partner).
Trainline – Clare Gilmartin (CEO).