CBS Outdoor Raises $560 Million in IPO on Way to REIT

CBS Outdoor Americas Inc. raised $560 million in its initial public offering, the latest step in CBS Corp.’s plan to spin off the billboard division.

The company said it sold 20 million shares at $28 each, after offering them for $26 to $28 apiece. Parent-company CBS will own 83 percent of the unit after the IPO, a regulatory filing shows. The shares will start trading tomorrow, listed on the New York Stock Exchange under the symbol CBSO.

The company, which announced plans last year to convert into a real-estate investment trust, or REIT, said that the proceeds from the IPO will be used to help complete the conversion, the filing shows.

Revenues at CBS Outdoor rose 0.7 percent to $1.3 billion last year, and at the current IPO price the company would be valued at 8.7 times 2014 estimated earnings before interest, taxes, depreciation and amortization, according to Bloomberg Industries data. Lamar is valued at about 12.3 times 2014 Ebitda while Clear Channel Outdoor Holdings Inc. is at about 11.7 times.

Goldman Sachs Group Inc., Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley managed the offering.