CBRE plans $150m New York flotation

CB Richard Ellis is planning to raise as much as $150m through a flotation on the New York Stock Exchange, two years after the company was taken private.

CBRE submitted a preliminary prospectus to the US Securities and Exchange Commission this morning. The company did not specify how many shares it is planning to offer, nor did it mention the initial price per share.

The company was taken private in 2001 by Ray Wirta and Blum Capital Partners, now CBRE’s biggest shareholder. Last year it acquired Insignia, which at the time was listed on the New York Stock Exchange, for $431m.

In a statement issued today, CBRE said it planned to use the proceeds from the share offer to redeem the remaining $38.3m of its 16% senior notes which expire in 2011. The remainder of the cash will be used “for other corporate purposes, including repayment of other debt”.

The IPO is expected to include shares offered by the company and secondary shares from Blum and other shareholders. The offer is being underwritten by a syndicate led by Citigroup and Credit Suisse First Boston.

The announcement coincided with CBRE’s results for the nine months to 30 September 2003. The company reported total revenue of $1.3bn, but a net loss of $16.5m.

Source: Freeman News/ Property Week

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