In documents filed with the Securities & Exchange Commission (SEC) on Tuesday, Altice USA laid out plans for an initial public offering (IPO) of the company’s stock this year, which analysts expect will raise between $1 billion and $2 billion while valuing Altice USA at more than $20 billion.
The U.S. arm of European cable and media conglomerate Altice NV, Altice USA has risen to become the fourth-largest provider of broadband and cable network services in the U.S. through its acquisitions of Suddenlink Communications in 2015 and Cablevision last year. Altice USA, which serves 4.9 million residential and business customers across 21 states, reported 2016 revenues of approximately $9.2 billion, and the unit’s performance is said to have contributed to a 14% surge in Altice NV’s share price during 2017. The IPO announcement also comes at a time of favorable market conditions in the U.S. Statistics cited by Bloomberg indicate that U.S. market IPOs have raised a total of $13.7 billion this year which is nearly double the amount amassed by companies during the same period last year.
Although officials at Altice NV acknowledged that the amount of shares to be offered in the IPO and the price range have yet to be determined, SEC documents state that Altice NV will contribute shares to the IPO along with its co-investors, BC Partners and the Canada Pension Plan Investment Board. Between them, these co-investors hold a stake of about 31% in Altice USA. The SEC documents also note that Altice USA intends to “opportunistically grow through value-accretive acquisitions” as “the U.S. broadband communications and video services market offers a number of attractive opportunities.”