BackApollo-backed ADT raises $1.47 billion, pricing IPO below range
ADT Inc. sold 105 million shares for $14 apiece after initially offering 111.1 million shares for $17 to $19 apiece.
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New York: ADT Inc., the home-security company owned by Apollo Global Management LLC, raised $1.47 billion in its US initial public offering (IPO).
The company sold 105 million shares for $14 apiece after initially offering 111.1 million shares for $17 to $19 apiece.
ADT intends to use the proceeds to pay down debt and to redeem preferred securities held by Koch Industries Inc. New York-based buyout firm Apollo acquired ADT in 2016 for about $6.9 billion, or $12.3 billion including debt, through its existing portfolio company Protection One. ADT is led by chief executive officer (CEO) Tim Whall, previously Protection One’s CEO.
Apollo will own about 85% of ADT after the IPO, according to the company’s regulatory filing.
ADT, which has about 7.2 million residential and business customers in the US and Canada, had a net loss of $296 million on revenue of $3.2 billion in the first nine months of last year. In 2016, it posted a net loss of $537 million on revenue of $2.9 billion.
Morgan Stanley and Goldman Sachs Group Inc. are leading the offering. The company will list its shares on the New York Stock Exchange under the ticker ADT. Bloomberg
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