Travelport value put at $2.1bn on market debut

 
Joseph Millis
Travelport has benefitted from a surge in business travel
Shares in Travelport soared by as much as 10.6 per cent on debut yesterday, valuing the UK travel business backed by private equity group Black­stone at $2.13bn (£1.3bn).

The company is benefiting from the recovery in business and leisure travel as the global economy improves.

Travelport raised about $480m after its offering of 30m shares was priced at $16 per share, the top end of the expected range of $14-$16.

Travelport, which provides a travel commerce platform and technology services to travel agents, airlines, hotels and car rental companies, sold all of the shares on offer.

The travel and tourism industry is projected to grow to $11 trillion by 2024 from $7 trillion now, according to a report by industry body World Travel & Tourism Council.

Travelport, which also counts Morgan Stanley funds am­ong its shareholders, was bought in 2006 by Blackstone and Technology Crossover Ventures from Cendant Corp.

Blackstone’s stake will drop to 6.90 per cent from 9.54 per cent after the offering, if the underwriters fully exercise their option.

The stake of Morgan Stanley funds will come down to 5.47 per cent from 7.56 per cent, while that of Angelo Gordon & Co funds will fall to 12.23 percent from 16.91 per cent.

Its directors and executives will hold a combined stake of 28.14 percent, down from 37.85 percent before the offering.

Travelport’s rivals include airline ticketing technology provider Sabre Corp, which owns online travel agency Travelocity, also made a strong US debut in April.

Related articles