Shares of investment powerhouse TPG jumped 12% within minutes of the start of its public-market trading Thursday in what is expected to be a huge year for initial public offerings and make the 20-year-old company the world’s most valuable. Making one of private equity. Company.
Listed on the technology-heavy Nasdaq exchange under the ticker TPG, shares began trading shortly after 12:15 p.m. EST, rising from an offering price of $29.50 to $33, while the broader market struggled, with the Nasdaq almost fell 1.5%, while the S&P 500 dropped 0.6%.
The rapidly rising stock price thereafter raised the firm’s valuation to nearly $10 billion. announced On Wednesday evening it plans to raise about $1 billion by selling 33.9 million shares to investors, which are expected to close on Tuesday.
Underwriters, which include JPMorgan, Goldman Sachs and Morgan Stanley, have the option to purchase approximately 3.4 million more shares of the stock, including approximately 1.8 million shares from TPG and 1.6 million from an unnamed investor.
With approximately 307 million shares outstanding, TPG’s lofty market capitalization makes it the fifth most valuable private equity firm in the U.S. — behind rival Carlyle Group ($18.7 billion), but not Apollo ($41 billion), KKR ($61 billion). ) and behind Blackstone. ($144 billion).
Having a net worth of some $109 billion, Texas- and San Francisco-based TPG, Blackstone ($619 billion), Apollo ($481 billion), Carlyle ($256 billion), is the second publicly traded US by assets. It has become the fifth largest private equity firm of Rs. and KKR ($252 billion).
TPG’s public market debut follows a “historically fast pace” of private-equity transactions in 2021, with firms closing 8,624 deals for a record $1.2 trillion, according to a team of Pitchbook analysts led by Wylie Ferniho. As of now, 64% higher than the previous peak. 2019