US buyout firm Kohlberg Kravis Roberts has appointed Citigroup and Morgan Stanley to act as advisers on a flotation according to US television channel CNBC’s Charles Gasparino.
Gasparino said that KKR would be pursuing a similar IPO to The Blackstone Group and not a fund IPO. He also said Apollo Management is pursuing a public offering of the company instead of a fund IPO. Speculation began in April that Apollo was planning a listing.
KKR and Apollo executives will be watching The Blackstone Group’s IPO with interest. Steve Schwarzman’s company has priced its IPO at $31 (€23.1) a unit, the top of its price range, which will raise $4.13 billion, valuing the firm at $33.6 billion.
KKR went public last year with KKR Private Equity Investors, a fund IPO on Amsterdam Euronext raising $5 billion after initially targeting $1.5 billion. The firm put $2 billion of this towards its 2006 fund and the rest into other KKR assets and funds.
KKR Private Equity Investors’ share price rose steadily during the last year after trading below its offer price for some time but it has dipped by 4 percent in the last month to $22.70 although this is up 4.37 percent on last year.
Apollo followed KKR onto Amsterdam Euronext, although it failed to raise its hardcap of $2.5 billion, instead raising $1.5 billion for its quoted fund. However, after dipping below its $20 per share offer price the shares have experienced a resurgence and were trading at $23 per share at yesterday’s close up 4 percent on last month.
KKR’s affiliate credit investment platform KKR Financial is also listed on the New York Stock Exchange.