Numericable Is Said to Seek IPO Valuation of Up to $8.3 Billion

Numericable SAS plans to announce next week a price range for an initial public offering that would value the French cable-TV provider at as much as 6 billion euros ($8.3 billion), said two people familiar with the matter.

The company’s enterprise value, which includes debt, will be in a range of 5 billion euros to 6 billion euros, said the people, who asked not to be identified because the pricing hasn’t been made public. Numericable, which competes with Orange SA (ORA) in selling TV, phone and high-speed Internet packages, had net debt of about 2.8 billion euros as of June 30.

Numericable is joining French companies including Web-advertising company Criteo SA and floor maker Tarkett SA attempting to list at home and in the U.S. this quarter. The cable provider’s IPO will likely be the largest listing in Paris since December 2009, when automotive distributor CFAO SA (CFAO) raised more than 800 million euros.

Numericable, based in Champs-sur-Marne, France, is holding a press conference on Oct. 28. Marie-Gabrielle Sorin, a representative for the company, declined to comment on the details of the press event.

IPO volumes in Europe have nearly doubled to about $19 billion this year, according to data compiled by Bloomberg, as investors resumed buying on strengthening economies and an easing euro debt crisis.

High-Speed Demand

Chief Executive Officer Eric Denoyer said in an interview this month that Numericable plans to appeal to investors by tapping into rising demand for speedier Internet connections.

In September, the cable carrier filed for the IPO, planning a capital increase of a range of 200 million euros to 250 million euros.

The company forecasts revenue growth of 2 percent to 5 percent a year from 2013 to 2016, with an adjusted margin on earnings before interest, taxes, depreciation and amortization of 50 percent in 2016. Last year, sales shrank 0.3 percent to 1.3 billion euros and the Ebitda margin was 47.6 percent.

The cable company’s owners include private-equity firms Carlyle Group LP, Cinven Group Ltd. and Altice.

JPMorgan Chase & Co. (JPM) and Deutsche Bank AG (DBK) are managing the share sale, along with banks including HSBC Holdings Plc (HSBA), Societe Generale SA (GLE) and Credit Agricole SA. (ACA)

To contact the reporters on this story: Marie Mawad in Paris at mmawad1@bloomberg.net; Ruth David in London at rdavid9@bloomberg.net

To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net; Aaron Kirchfeld at akirchfeld@bloomberg.net

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