ICE Plans Euronext IPO, to Sell Stake to Investors Prior

May 27, 2014 5:20 am ET

(Adds timing of IPO in first paragraph, detail on valuation in second paragraph.)

May 27 (Bloomberg) -- IntercontinentalExchange Group Inc. said it plans an initial public offering for Euronext NV in Paris, Amsterdam and Brussels in the second quarter after it sells part of the exchange to a group of European financial institutions.

Before the initial public offering, ICE will sell a stake of about 33 percent to group that includes Banco Espirito Santo SA, BNP Paribas SA, ABN Amro Group NV, Societe Generale SA and Euroclear SA/NV.

The investors, who have each agreed not to sell their stake within three years after the IPO, will be offered shares at a limited discount to the final IPO price, Lee Hodgkinson, Euronext’s head of markets and global sales, said in an interview today.

ICE is seeking to spin off Euronext after acquiring the exchange through its purchase of NYSE Euronext in November. The operator of the Amsterdam and Paris exchanges will become independent for the first time since 2007, when it was bought by NYSE Group Inc. ICE has kept the London-based Liffe derivatives exchange. In January, Euronext valued itself at between 1.5 billion euros ($2.1 billion) and 1.8 billion euros, people familiar with the matter said at the time.

Euronext includes all the operations“that existed prior to the separation and those of its subsidiaries, with the exception of the London-based Liffe derivatives exchange and related market data services,” ICE said today. “The IT services supporting Liffe’s exchanges will be terminated once Liffe has completed its migration to ICE’s technology platform, which is intended to take place by the end of 2014.”

European regulators told ICE it would have to keep a 25 percent stake in the exchange for three years after the IPO unless it can attract investors prepared to hold the shares for the long term, people familiar with the situation said in January.

ABN Amro, JPMorgan Chase & Co. and Societe Generale will act as joint global coordinators of the IPO, ICE said. Euronext plans to list in Lisbon after the IPO and before the fourth quarter, ICE said.

Euronext, formed from the merger of the Paris, Amsterdam and Brussels exchanges in 2000, completed its initial share sale in 2001. After a series of acquisitions including that of Liffe, Europe’s second-largest derivatives market, Euronext was bought by NYSE Group Inc. in 2007, forming the world’s biggest stock- exchange operator. In December 2012, ICE said it would buy the company and spin off Euronext after completion. ICE is keeping the London-based Liffe derivatives market.

The exchange is now seeking approval from the Dutch regulator, Hodgkinson said, declining to comment on timing. Euronext has also applied for an exchange license in the U.K., seeking to replace one that Liffe holds.