EG Group Mulls $9 Billion US Initial Public Offering

Key IPO Development

Gas station operator EG Group is reportedly preparing for a United States initial public offering this year, with a potential valuation reaching up to $9 billion. According to reports, the company is expected to begin selecting banks for the listing process as early as next week.

Company and Deal Overview

Co-founded by the British billionaire Issa brothers in 2001, EG Group is a major forecourt convenience retailer. The company's ownership is currently split evenly, with the founders retaining a 50% stake and private equity firm TDR Capital holding the remaining 50%. This IPO consideration follows the company's recent strategic divestment of its Italian business, EG Italia, for an enterprise value of €425 million in December.

Market and Economic Impact

A successful IPO of this magnitude would represent a significant event for the US public markets, particularly within the retail and convenience sectors. The listing would provide EG Group with substantial capital for future expansion or debt reduction while offering a major liquidity event for its private owners. The move signals underlying confidence in the US market's appetite for large-scale public offerings.

Summary and Outlook

The potential $9 billion IPO of EG Group in the US marks a pivotal strategic step for the company. Market participants and investors will be closely monitoring the selection of underwriting banks and subsequent official filings for more concrete details on the company's financial health and growth strategy.

FAQ

Q: What is EG Group preparing for?
A: The company is preparing for a potential initial public offering or IPO in the United States.

Q: What is the potential valuation of the EG Group IPO?
A: The IPO could value the gas station operator at up to $9 billion.

Q: Who are the primary owners of EG Group?
A: The company is owned by its co-founders, the Issa brothers, and private equity firm TDR Capital, each holding a 50% stake.

Source: Investing.com