TPG sets pricing for USD 9.5bn IPO

Rachel Lewis
05 January 2022

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Global private equity firm TPG has launched an IPO roadshow, setting the price of its shares at USD 28-31.

TPG is hoping to raise up to USD 877m by selling 28.3 million shares on the Nasdaq exchange. It will use two-fifths of the proceeds to buy out existing shareholders in the TPG operating entity.

The remainder could go towards growing TPG's existing business and expanding into new geographies and business lines, the firm says in its prospectus.

It appointed Goldman Sachs and JP Morgan Chase to work on a public listing in August 2021.

China Life Insurance, which bought a USD 250m stake in TPG in 2014, will also sell 5.6 million shares in the IPO.

TPG is one of the world's largest private equity firms and many of its funds target high-growth businesses.

In August 2021, it closed TPG Growth Fund V on $3.6bn; the fund is already 42% deployed according to Unquote Data. In 2019, TPG also closed TPG Partners VIII on $11.2bn and specialised healthcare fund TPG Healthcare Partners on a further $2.6bn.

In Europe, TPG has just six active investments, according to its online portfolio; these include budget hostel provider A&O, recruitment platform Frank Recruitment Group, industrial logistics group Icon, data storage provider Infinidat, biometrics company Onfido, and waste recycling provider Regen.

Most recently, TPG exited online bathroom products retailer Victoria Plum to PE buyer Endless in October 2019 and split its TES business in two, selling TES Global to Providence Equity Partners and Times Higher Education to Inflextion Private Equity.

Floats your boat
Unquote last month reported how PE firms across Europe have seen a step up in conversations about going public. Last year saw listings of PE and asset managers reach an aggregate value of €6bn globally, nearly three times higher than 2019.

Antin Infrastructure opened on the Euronext Paris in September 2021 at EUR 30, a 37% premium to its final pricing of EUR 24. London-based Bridgepoint opened at a similar premium when it went public on the London Stock Exchange at 484 pence a share in July 2021.

Since listing, Antin's shares are up 11% but Bridgepoint's are down 2%.

In the US, TPG rivals KKR, Blackstone and Apollo are already listed.

TPG was founded in San Francisco in 1992 and has $109bn in assets under management and investment. It invests across five multi-product platforms: capital, growth, impact, real estate, and market solutions.