Nielsen, who was taken private only about four years ago plans to go public again to raise US$ 1.75bn. It is not quite clear what percentage of equity would be offered. Nielsen’s owners hope to realize a valuation of 11 to 13 times earnings, before interest, tax, depreciation and amortization. Nielsen’s adjusted 2009 EBITA was US$ 1.3bn. The funds will be used to repay part to the US$ 8.66 bn in debt and for general corporate purposes.
Nielsen IPO would be the biggest public offering this year in the US and the ninth largest world-wide. The Nielsen IPO will test investors’ appetite for such a large investment in an information business at such high valuation. Some potential investors indicated a valuation in the range of 10 to 11 times EBIDTA would be more appropriate. Source: Financial Times