TransUnion, which shares the title as one of the big three credit-reporting firms with Equifax and Experian, opened trading on the New York Stock Exchange Thursday June 25th up at $24.62, 9.4% above its initial public offering price of $22.50. It’s stayed pretty steady ever since, trading at $24.66 in recent trading.
It was not the credit-reporting company’s first attempt to publicly list its shares. In 2011, TransUnion launched an IPO, but its stock never made it to the public market. Instead, Advent International and Goldman Sachs Group Inc. private-equity unit acquired TransUnion.
According to investors who spoke to bank analysts or salespeople about TransUnion’s IPO, projections for the firm’s earnings in 2017 are about $1.19 a share. That would give TransUnion a price-to-earnings multiple of about 19 at is IPO price. This is below the price-to-earnings multiples of Experian and Equifax, which are currently trading at 25 times and 33 times the past 12 months of earnings, respectively, according to FactSet.
The deal was led by Goldman Sachs, J.P. Morgan Chase & Co., Bank of America Corp. and Deutsche Bank and raised about $665 million by selling 29.5 million shares.
Source: Wall Street Journal
