Dec 2 Food services provider Aramark Holdings
Corp said it expects to price its initial public offering at
between $20 and $23 per share, valuing the company at about $5.3
The offering of 36.3 million shares would raise about $833.8
million at the higher end of the price range.
The company is selling 28 million shares in the offering,
while certain stockholders are selling the rest, according to a
filing with the U.S. Securities and Exchange Commission. ()
The Philadelphia-based company provides food, facilities and
uniform services to the education, healthcare, sports and
leisure industries and operates brands such as WearGuard and
Aramark was taken private in 2006 for $8.3 billion by
chairman Joseph Neubauer and private equity investors including
GS Capital Partners, JP Morgan Partners and Warburg Pincus.
Aramark operates under three mains units -- Food and Support
Services (FSS) North America, FSS International and Uniform. The
company is headed by former chief executive of Pepsi Beverages
Co, Eric Foss.
Warbug Pincus will remain the company's largest shareholder
even though its stake in the company will fall to about 18.2
percent from 21.5 percent after the offering, if the
underwriters option is not exercised.
Private equity firms have been trying to sell or list assets
to take advantage of a surging IPO market as a market rally and
low interest rates entice investors into stocks.
On Monday, hotel operator Hilton Worldwide Inc, controlled
by Blackstone Group LP said its IPO would raise up to
Aramark reported revenue of $13.9 billion and net income of
$70 million for fiscal 2013. It had debt of about $5.8 billion
as of Sept. 27.
The company intends to list its common stock under the
symbol "ARMK" on the New York Stock Exchange.
Goldman Sachs, JP Morgan, Credit Suisse and Morgan Stanley
are the lead underwriters to the offering.