Photographer: Daniel Acker/Bloomberg
Apollo's ADT Seeks to Raise Up to $2.1 Billion in U.S. IPOBy
The company plans to sell 111.1 million shares for $17 to $19 apiece, according to a filing Friday with the U.S. Securities and Exchange Commission. At the high end of the range, the IPO would value Boca Raton, Florida-based ADT at about $14.4 billion.
ADT intends to use the proceeds to pay down debt and to redeem preferred securities held by Koch Industries Inc. New York-based buyout firm Apollo acquired ADT in 2016 for about $6.9 billion, or $12.3 billion including debt, through its existing portfolio company Protection One. ADT is led by Chief Executive Officer Tim Whall, previously Protection One’s CEO.
Apollo will own about 85 percent of ADT after the IPO, according to the filing.
ADT, which has about 7.2 million residential and business customers in the U.S. and Canada, had a net loss of $296 million on revenue of $3.2 billion in the first nine months of last year. In 2016, it posted a net loss of $537 million on revenue of $2.9 billion.
Morgan Stanley and Goldman Sachs Group Inc. are leading the offering. The company has applied to list its shares on the New York Stock Exchange under the ticker ADT.