X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Rumors of the Blackstone Group’s pending initial public offering began circulating in March, and by the end of that month the firm had filed papers with the Securities and Exchange Commission for what amounts to a $4.75-billion IPO. Less than two months later and the Blackstone Group LP is quickly moving forward with its plans.

According to a release issued by the company today, Blackstone will close on the IPO at the same time it closes on a $3-billion sale of non-voting shares to a Chinese company. The State Investment Co., a Chinese foreign exchange investment firm, has agreed to pay $3 billion for the non-voting units. The price per share factors out to 95.5% of the public offering price and the State Investment Co. has agreed to hold its shares for at least four years.

The IPO, which is officially being filed by the Blackstone Group LP, is said to be the largest ever in US history, valuing the company at $33.6 billion. According to SEC documents, Blackstone will offer 133.3 million common shares at $29 to $31 each. At this price the proceeds would total between $3.9 billion to $4.1 billion. Based on demand, another 20 million shares could be sold. If those sell the IPO would be worth roughly $4.75 billion. Including the investment by the Chinese firm, Blackstone could make $7.75 billion by selling common units.

Blackstone, which was started in 1985 by Peter Peterson and Stephen Schwarzman, has recently lead the merger and acquisition wave. The firm took the Chicago-based Equity Office Properties Trust private at the beginning of February. The $39 billion Blackstone paid for EOP initially gave it 580 buildings for a total of 108.6 million sf. The firm then launched into a series of big-ticket property flips, including Maguire’s nearly $3-billion purchase of certain Southern California holdings.

In October 2006, Blackstone, with the help of New York City-based Brookfield Properties Corp., took Trizec Properties Inc. and Trizec Canada Inc. in a $9-billion deal. The buy-out of Trizec added 48 office properties totaling 26 million sf to Blackstone’s and Brookfield’s portfolio.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.