KKR-Backed First Data Dips in Debut After Below-Range IPOby
First Data Corp., the payments processor backed by KKR & Co., fell in its trading debut after pricing the shares in its initial public offering below the marketed range.
First Data slid 1.6 percent percent to $15.75 at the close in New York, giving the company a market value of about $13.8 billion. The company sold 160 million shares for $16 apiece in its IPO Wednesday, according to a statement, after offering them for $18 to $20 each.
The IPO is an important one for KKR, as First Data ended up being the private-equity firm’s biggest equity bet. At $16, KKR’s stake is valued at $4.5 billion, or about 15 percent higher than its $3.9 billion investment. Proceeds from the offering will be used to pay down First Data’s debt, which totaled $21 billion at the end of June, largely a result of the 2007 leveraged buyout.