Spanish travel technology firm Hotelbeds is reportedly considering an initial public offering (IPO) next year, with plans to sell more than €1 billion (about $1.07 billion) worth of shares.
The company is in talks with banks to lead the sale, Reuters reported Monday (Sept. 18), citing unnamed sources. The firm is advised by Evercore, with Morgan Stanley expected to be appointed as global coordinators alongside a couple of other banks.
Hotelbeds’ shareholders, including private equity funds Cinven and EQT, as well as Canadian pension plan CPP Investments, are leaning toward Madrid as the preferred listing venue, according to the report. However, these plans are still in the preliminary stage and subject to change.
Initially, the shareholders had also been considering a private sale as an alternative to an IPO, the report said. However, the decision to pursue an IPO reflects the improving investor sentiment towards new stocks after a period of subdued activity. If the listing takes place in Spain, it would be one of the country’s largest IPOs in recent years.
Hotelbeds, headquartered in Majorca, provides travel agencies, airlines and tour operators with access to hotel rooms worldwide, per the report. The company has rebounded following the lifting of pandemic travel restrictions. In fact, earlier this year, Hotelbeds reported its best two weeks ever in booking revenue, with bookings peaking at one per second.
This report comes three days after grocery-delivery company Instacart increased the price range for shares in its upcoming IPO. The firm decided to do so following the successful trading debut of chip designer Arm Holdings, which has boosted confidence in new listings.
The IPO market has been relatively quiet lately, but Arm’s 25% surge on its first day of trading is expected to reinvigorate the market for new deals.
Other companies, such as Klaviyo and Birkenstock, are also preparing to sell shares in the coming weeks amid this resurgence in investor confidence.
In another recent move in the hospitality sector, travel software firm Sabre announced July 5 that it has acquired Techsembly, a London-based company that offers hotels an automated eCommerce solution. Sabre said at the time that the purchase will boost its hospitality eCommerce offerings.