TPG, Parent Company of CAA and DirecTV, Sets IPO Share Price

TPG, the massive private-equity firm whose holdings include CAA and DirecTV, has set the price of its initial public offering at $29.50 per share, offering 33,900,000 shares of Class A common stock.

Per a Thursday press release from TPG, “The shares are expected to begin trading on NASDAQ on January 13, 2022, under the symbol ‘TPG.’ The offering is expected to close on January 18, 2022, subject to customary closing conditions.”

“Of the offered shares, 28,310,194 shares are being offered by the Company and 5,589,806 shares are being offered by an existing strategic investor pursuant to a registration statement filed on Form S-1 with the Securities and Exchange Commission (the “SEC”). The underwriters will have a 30-day option to purchase an additional 3,390,000 shares of common stock, consisting of 1,775,410 shares from the Company and 1,614,590 shares from the existing strategic investor.”

Last month, TPG proposed in its IPO filing to raise $100 million, but that’s with the caveat that the figure is only an estimate used to calculate the registration fee.

In its S-1, TPG said it had $109.1 billion in assets under management as of Sept. 30, 2021, up 81% since 2016. Overall, TPG has investments in more than 280 companies. The company’s entertainment investments have included CAA, DirecTV, Entertainment Partners, Fandom, Spotify, STX Entertainment, Univision and Vice Media. CAA, for its part, in September announced plans to acquire ICM Partners.

Per TPG’s Thursday announcement, “TPG intends to use approximately 40% of the net proceeds to purchase partnership interests in the TPG operating entity from other existing strategic investors, and the remaining net proceeds it receives to pay offering and reorganization expenses and for general corporate purposes, which may include facilitating the growth of TPG’s existing business and/or expanding into complementary new lines of business or geographic markets. TPG will not receive any proceeds from the sale of shares by the existing strategic investor.”

More to come…

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