Altice USA unveils $1.35B IPO plan, could be targeting Cox purchase, analysts say

Altice USA CEO Dexter Goei
Altice USA CEO Dexter Goei could be targeting Cox Communications as his company's next major U.S. purchase, some analysts say.

Altice USA unveiled the key terms of its initial public offering today, with the U.S. cable arm expecting to price its common stock at $27-$31 a share and raise as much as $1.35 billion. 

More than 12 million shares will be offered by Altice USA, nearly 21 million will be offered by funds advised by BC Partners, and more than 13.5 million shares will be offered by entities affiliated with the Canada Pension Plan Investment Board.

"The holders of our outstanding Class B common stock will hold approximately 98.0% of the voting power of our outstanding capital stock immediately following this offering," Altice said in its statement. Holders of those shares include Altice founder Patrick Drahi.

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The company has applied to list its stock on the New York Stock Exchange under the ticker symbol ATUS.

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

Altice USA is the fourth-largest cable company in the U.S. It was formed last year, when Europe’s Altice NV closed on its $9.1 billion purchase of Suddenlink Communications and its $17.7 billion buyout of Cablevision Systems.

It is widely expected that Altice USA, cash in hand, will pursue further consolidation of the U.S. cable industry. Mid-sized operators WideOpenWest and Cable One are potential M&A targets.

Some analysts are quietly suggesting, however, that the No. 3 operator, privately held Cox Communications, will be a primary Altice USA takeover target. 

J.P. Morgan, Morgan Stanley, Citigroup and Goldman Sachs are acting as joint book-running managers for the proposed IPO, which Altice first filed for in April.

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