Carlyle falls short of IPO target

The private equity firm priced the 30.5 million shares – or 10% of its enlarged share capital – at $22 apiece, having originally set an indicative price range of $23-25. Underwriters have a 30-day option to buy an additional 4.575 million shares. The stock is due to begin trading on the NASDAQ Global Select Market on Thursday.

Carlyle's initial target of up to $762.5m would have valued the company at $7.6bn – still less than half the current market capitalisation of The Blackstone Group and more than $2bn behind KKR.

Private equity firms haven't performed well in the public markets. Blackstone has lost about half of its market value since listing in 2007, while Apollo Global Management is trading at around a 25% deficit to its March 2011 opening price. Last month, Oaktree Capital Management raised $387m in its IPO, 25% less than its target, and the stock declined 1.4% on its trading debut.

This article was originally published in unquote" sister publication AVCJ. Read the original story here.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Industry
• Carlyle Group
• Flotation