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Nielsen Holdings Files for $1.75 Billion IPO Amidst Market Volatility

Strategic Insights

— 1 min read

Nielsen Holdings, a leading provider of television-audience ratings, has filed for an initial public offering (IPO) to raise as much as $1.75 billion. The company, owned by buyout firms KKR & Co., Thomas H. Lee Partners LP, Blackstone Group LP, and Carlyle Group, plans to use the proceeds to help pay down its $8.6 billion in debt. Despite market volatility triggered by the European debt crisis, Nielsen is pressing ahead with the IPO, which is being managed by a team of top investment banks including JPMorgan Chase & Co., Morgan Stanley, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., and Citigroup Inc. Industry experts believe that Nielsen's solid brand and industry-standard TV ratings make it an attractive investment opportunity, despite the current market conditions.

Key Takeaways:

  • Nielsen Holdings is seeking to raise up to $1.75 billion in its initial public offering (IPO) to pay down its $8.6 billion in debt.
  • The company's IPO is being managed by a team of top investment banks, including JPMorgan Chase & Co., Morgan Stanley, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., and Citigroup Inc.
  • Nielsen is an industry standard for TV ratings, helping to set advertising prices in the U.S.
  • The IPO comes despite market volatility triggered by the European debt crisis, which has led to a 9.9% slump in the MSCI World Index of developed-nation stocks in May.
  • At least 20 companies worldwide have postponed or shelved their IPOs due to market conditions.
  • Initial offerings from U.S. companies backed by buyout firms are also losing money for IPO investors for the first time in at least a decade.

Statistics:

  • Nielsen Holden's IPO is seeking to raise up to $1.75 billion in debt repayment.
  • The company has $8.6 billion in debt to be repaid through the IPO.
  • The MSCI World Index of developed-nation stocks has seen a 9.9% slump in May due to the European debt crisis.
  • At least 20 companies worldwide have postponed or shelved their IPOs due to market conditions.
  • Initial offerings from U.S. companies backed by buyout firms have lost money for investors for the first time in at least a decade.

Sources:

  • Bloomberg News
  • Nielsen Holdings filing with the Securities and Exchange Commission
  • Toronto Star 2010

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