Altice USA officially files for IPO, raises cash for further expansion

Altice CEO Dexter Goei and founder Patrick Drahi
Altice NV chief Patrick Drahi, right, instructs Altice USA Chairman and CEO Dexter Goei to purchase all the breathable air at this 2016 investor event and sell it on a subscription basis.

Altice USA is looking to raise cash for further expansion and has executed on a plan to conduct an initial public offering.

In a filing with the Securities Exchange Commission Monday, the European telecom conglomerate’s U.S. cable-operator arm said it plans to raise $100 million. However, the actual monetary goal is probably higher—Altice said the $100 million figure was “estimated solely for the purpose of calculating the amount of the registration fee."

The company said it’s still determining the number of shares it will offer and the price range for the IPO. Reuters said the company could be looking to raise as much as $2 billion. 

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According to the Wall Street Journal, the IPO is likely to value Altice USA at more than $20 billion. Canadian Pension Plan Investment Board and BC Partners Ltd., which jointly own 30% of Altice USA, are likely to sell 5% to 10% of the company, WSJ added. 

Altice USA was formed in 2015, when Altice NV closed its $9.1 billion purchase of a 70% stake of Suddenlink Communications, as well as its $17.7 outright purchase of Cablevision. Altice USA is the fourth largest cable company behind Comcast, Charter Communications and privately held Cox Communications. 

Now based in Cablevision’s Bethpage, New York, headquarters, Altice USA reported $9.15 billion in pro-forma revenue in 2016, a 2% year-over-year bump, with losses narrowing to $656 million vs. $1.1 billion for 2015, Variety reported. 

The U.S. operation is run by Chairman and CEO Dexter Goei, a former JP Morgan and Morgan Stanley banker who jointed Altice NV in 2009.

JP Morgan, Morgan Stanley, Citigroup and Goldman Sachs are the banks serving as joint book-runners for the IPO.