Updated: Backed By Private Equity Giants, Global Realty Firm Follows Newmark in Tapping Public Markets to Fund Development
After more than a year of market speculation, & Cushman & Wakefield today filed a registration declaration with the U.S. Securities and Exchange Commission for a going public.
The Chicago-based firm established in 1917 sent a confidential filing in April and has not yet divulged the number of shares it anticipates to provide or chosen an exchange or ticker symbol. Greenwich, CT-based Renaissance Capital, which focuses on investigating newly public business worldwide, estimated the offering might raise $500 million, while other reports said the company might take in up to $1 billion, with a total appraisal of more than $5 billion.
A Cushman & & Wakefield spokesperson Wednesday decreased to comment beyond the registration statement.
Cushman & & Wakefield, which reported revenue of $6.9 billion in 2017, has about 48,000 staff members around the world in about 400 offices in 70 countries. The company handles approximately 3.5 billion square feet of industrial space.
Credit: Cushman & Wakefield Cushman & & Wakefield is led by Executive Chairman and CEO Brett White, who invested 28 years at Cushman competing CBRE, where he served as president from 2001 to 2005 and CEO from 2005 until stepping down in 2012. John Forrester is the company’s worldwide president. He formerly was president, EMEA at DTZ prior to the merger with Cushman & & Wakefield
. The business was developed in its existing type in 2014 when personal equity firms TPG Capital, PAG Asia Capital and the Ontario Teachers’ Pension Plan Board obtained residential or commercial property services firm DTZ from UGL Limited. At the end of 2014, the firm’s principal investors obtained and Cassidy Turley and integrated it with DTZ.
Lastly, in 2015, the financial investment backers bought Cushman & & Wakefield from Italian investment company Exor and other investors, deciding to keep the Cushman & & Wakefield name.
Reports appeared in March that Cushman had actually resumed talks with investment bankers, with a potential filing in June or July.
In the filing, Cushman stated it would utilize profits from the offering to pay back financial obligation, consisting of delayed payments from the Cassidy Turley acquisition. TPG, PAG Asia Capital and the Ontario Educators Pension Plan Board, which now own more than 90% of the business’s shares, will continue to control a majority interest after the offering is finished.
Cushman & & Wakefield is tapping public markets following a duration of quick development stressed by a string of annual bottom lines following its 2014 acquisition from Exor. Yearly revenue has leapt each year, from $4.2 billion in 2015 to $6.2 billion in 2016, to $6.9 billion in 2017, inning accordance with the filing.
Cushman also reported annual bottom lines of $473.7 million, $449 million and $220.5 million during the very same duration. According to a March 2015 release by Exor, Cushman produced income of $2.85 billion and profits of $61.6 million in 2014, both records for the company.
With aid from a record very first quarter, both the overall variety of IPOs and proceeds are up greatly in 2018, with the 84 IPOs so far this year raising $25.1 billion, inning accordance with Renaissance Capital.
Real estate business make up about 3% of the total offerings this year, with the largest being a $1.2 billion IPO by VICI Residences, a Spring Valley, NV-based REIT concentrating on gambling establishment homes; and a $725 million offering by cold-storage supplier Americold Realty, both introduced in January.
The last real estate services company to check the market was Newmark Knight Frank and moms and dad BGC Partners, which finished a going public for the launch of Newmark Group, Inc. (Nasdaq: NMRK) last December, the first commercial property services firm to go public since the June 2015 IPO of Colliers International Group, Inc.
. Newmark Group debuted at $13.95 per share on Dec. 15 and traded as high as $16.66 in February prior to settling into the $13.50-$15 variety over the last few months. However, the business had to dramatically downsize its offer size and pricing amid weak initial reaction from financiers. Newmark shares closed Wednesday at $14.78, up almost 6% from the company’s public launching.
In its filing, Cushman made the case that the timing for an IPO is strong as the property market’s bull market continues. The international industrial home industry is projected to grow 5% annually to more than $4 trillion through 2022, outmatching overall service development. Cushman & & Wakefield and other large international companies are poised to continue to grow market share by acquiring and rolling up smaller sized rivals.
Morgan Stanley, JPMorgan, Goldman Sachs and UBS will lead the offering, helped by Barclays, BofA/ML, Citi, Credit Suisse, William Blair and TPG Capital BD.
Editor’s note: This upgrade includes an estimate of the IPO’s potential prices by Renaissance Capital.