It’s still early in the year, but we’re seeing some impressive initial public offering (IPO) action in markets already. Among the more intriguing names to file for an IPO of late is TPG. The alternative asset investments firm has filed for a $1 billion IPO, which would bring TPG stock to the market. Let’s take a closer look at what investors should know about the TPG stock IPO.
According to the company’s recent roadshow, this prospective TPG stock IPO could value the company at a $9.5 billion valuation. This private equity firm has garnered significant interest from investors. As a way to play alternative assets, investors in the private equity space can gain exposure to harder-to-invest-in assets such as real estate and private businesses via private equity companies like TPG.
As the TPG stock IPO approaches, investors may want to know more about this deal. Therefore, let’s dive into a few things investors may want to know about this upcoming offering.
What to Know About the TPG Stock IPO
Private equity firm TPG is quickly approaching its official listing date. The company began its investor road show on Jan. 4, and is expected to start trading this Thursday. According to more recent reports, it’s expected that TPG is more likely to raise around $877.6 million, at the higher end of its price range. Stock market volatility has played into valuation concerns of late, leading to interesting timing for this listing for investors.
TPG has shifted its business model somewhat, focusing more on growth and social impact investing of late. Investors looking for companies that also provide a positive social impact may like the direction TPG is headed. The company’s revenues have surged, more than quintupling over the past year. Accordingly, many insiders are viewing this as an opportunity to cash out, with approximately 40% of the stock being sold being handed over by insiders.
Will the upcoming TPG stock IPO be a home run or a let down? Only time will tell. However, for now, this is an IPO many investors will want to keep on their radar this week.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
