HBX Group, Formerly Hotelbeds, Announces €725 Million IPO in Spain
HBX Group, previously known as Hotelbeds, has officially confirmed its plans to launch a €725 million IPO on the Spanish stock exchange. This move marks the first major public offering in Spain for 2025, signaling a important milestone for the company and the broader travelTech sector.
The IPO, scheduled for early febuary, will include a primary offering of new shares and a secondary offering of existing shares. While the exact details of the secondary offering remain undisclosed, market sources suggest it could amount to around €500 million.The company is adopting a cautious approach, keeping its options open based on investor response in the coming weeks.
HBX Group aims to leverage the current tourism boom, projecting a gross operating result (EBITDA) of €400 million for 2024, with expectations to surpass this figure in 2025. The company also plans to distribute a dividend of up to 20% of profits over the next three years, a move designed to attract long-term investors.
Key Objectives of the IPO
Table of Contents
- Key Objectives of the IPO
- Why Madrid?
- Valuation and Ownership
- Dividend Policy and Future Plans
- Summary Table: HBX Group IPO Highlights
- the IPO Process Begins
- A Star-Studded Financial Team
- A Challenging IPO Landscape
- Key Takeaways
- Looking Ahead
- Challenges and Opportunities
- Ownership Structure
- looking Ahead
The primary offering will focus on reducing the group’s leverage ratio from 3.2 times at the end of fiscal year 2024 to approximately 2.5 times. Additionally, the funds will be used to liquidate existing incentive plans, facilitate structured sales for current and former employees, and cover transaction and refinancing costs.
Why Madrid?
HBX Group considered multiple listing locations but ultimately chose Madrid as its natural market.The company’s unique business model, combined with the global tourism resurgence, positions it as a standout player in a competitive industry with high barriers to entry.
Valuation and Ownership
The company is seeking a valuation of around €5 billion, a significant increase from its 2016 acquisition price of €1.165 billion by Cinven and CPPIB. EQT joined as a minority stakeholder in 2017.Despite interest from major players like blackstone and Apollo, the owners opted for an IPO, believing it aligns better with their valuation expectations.
Dividend Policy and Future Plans
Post-listing, HBX Group aims to implement a dividend policy with a pay-out ratio of 20% from 2026 to 2029. The company’s board will review this policy annually, exploring choice methods of capital remuneration to ensure attractive returns for shareholders.
Summary Table: HBX Group IPO Highlights
| Aspect | Details |
|————————–|—————————————————————————–|
| IPO size | €725 million (primary offering) |
| Secondary Offering | Estimated €500 million |
| Listing Location | madrid, Spain |
| Valuation Target | €5 billion |
| Dividend Policy | Up to 20% of profits (2026-2029) |
| Key Owners | Cinven, CPPIB, EQT |
| EBITDA Projection | €400 million (2024), expected to grow in 2025 |
HBX Group’s IPO represents a strategic step to strengthen its financial position and capitalize on the thriving travelTech sector. With its robust growth trajectory and investor-kind policies, the company is poised to make a significant impact on the Spanish stock market.
For more details on HBX Group’s journey and its IPO plans, visit the original source here.Hotelbeds Sets Sights on IPO Amid Market Uncertainty
Hotelbeds, the global leader in the travel distribution sector, is gearing up for a highly anticipated initial public offering (IPO). Originally slated for the summer of 2024, the company has postponed its plans to the end of the year, citing a crowded market with other significant debuts like Europastry and Puig. The delay was further influenced by geopolitical uncertainty and macroeconomic concerns, which have persisted into early 2025.
The decision to delay the IPO was strategic. “The numbers of tourist activity were estimated to be record high, thus allowing the show of muscle before the leap,” according to sources close to the operation. However,the volatile global landscape has forced Hotelbeds to recalibrate its timeline.
the IPO Process Begins
With the publication of the ITF (Data Technology Framework),hotelbeds has officially initiated its IPO process. The company will kick off with pilot phishing meetings, engaging analysts and making initial contacts with potential investors. Within a couple of weeks, the National Securities Market Commission (CNMV) is expected to approve the prospectus, paving the way for the roadshow.
During the roadshow, investors from Europe and the United States will have the opportunity to request shares, marking a critical phase in the IPO. The company has assembled a formidable team of financial advisors and coordinators to ensure the operation’s success.
A Star-Studded Financial Team
Hotelbeds has enlisted Evercore as its financial advisor, with Morgan Stanley, Citi, and Bank of America serving as global coordinators. In the second tier, Banco Santander, Barclays, BNP Paribas, Deutsche Bank, and UBS will play pivotal roles. Rounding out the team are Alantra and BBVA, who will support the operation in its final stages.
A Challenging IPO Landscape
Hotelbeds’ IPO comes at a time when recent market debuts have faced mixed results. Puig, the Spanish cosmetics giant, made headlines with its record-breaking IPO in May 2024, onyl to disappoint investors with a 30% drop from its debut price. Similarly, Cox experienced a rocky start in November 2024, though it has as moderated its losses to 3%. Other companies, such as Astara, Eurospatry, and tendam, have shelved their IPO plans altogether.
Despite these challenges, Hotelbeds remains optimistic. The company’s strong position in the travel distribution sector and its strategic timing could help it navigate the turbulent IPO waters.
Key Takeaways
| Aspect | details |
|————————–|—————————————————————————–|
| IPO Timeline | Postponed from summer 2024 to end of 2024, with operations starting in 2025 |
| Financial Advisors | Evercore, Morgan Stanley, Citi, Bank of America, Banco Santander, and more |
| Recent IPO Performance| Puig (-30%), Cox (-3%), others shelved |
| Strategic Focus | Leveraging record tourist activity and strong market position |
Looking Ahead
As Hotelbeds prepares for its IPO, the company faces both opportunities and challenges. The travel industry’s recovery and the company’s robust distribution network could position it for success. However, the broader economic and geopolitical landscape remains a wildcard.
For investors, Hotelbeds’ IPO represents a chance to back a leader in a resilient sector.For the company, it’s a pivotal moment to showcase its strength and secure its future growth.
Stay tuned for updates as Hotelbeds embarks on this transformative journey. Will it defy the odds and emerge as a standout IPO in 2025? Only time will tell.
, paving the way for the IPO to proceed.
Challenges and Opportunities
Hotelbeds faces a unique set of challenges as it prepares for its IPO. The company plans to raise between €600 million and €700 million, which would value the travel distribution leader at around €5 billion. The offering will include a combination of primary and secondary shares, allowing the company to reduce its leverage and provide liquidity to its owners.
The IPO is expected to attract important interest from investors, given Hotelbeds’ dominant position in the travel industry and the strong recovery in global tourism. The company’s gross operating result (EBITDA) reached €400 million in 2024, and it anticipates further growth in 2025.
Ownership Structure
Hotelbeds is primarily owned by Cinven and CPPIB,which acquired the company in 2016 for €1.165 billion. EQT joined as a minority shareholder in 2017. Despite interest from major private equity firms like Blackstone and Apollo, the owners have opted to pursue an IPO, believing it aligns with their valuation goals and offers a more obvious exit strategy.
looking Ahead
Hotelbeds’ IPO represents a pivotal moment for the company and the travel industry. The offering will not only strengthen its financial position but also enable it to capitalize on the ongoing tourism boom. With a clear growth trajectory and investor-focused policies, Hotelbeds is well-positioned to make a significant impact on the public market.
For more details on Hotelbeds’ IPO plans and its broader strategy, visit the original source here.
