Formula One’s $12bn flotation on track

0571CB7D6631Formula One’s proposed flotation on the Singapore stock exchange is still on track to be completed in the next twelve months.

Despite rumours recently circulating that private equity firm CVC was looking at postponing the flotation for a second time, a source close to the company has confirmed that everything is going to plan.

The source told The Guardian that CVC “isn’t planning to sell more stakes before the float,” with the company selling 28.4% of the sport for $2.1bn. The initial date set for the flotation was June 2012, but this was postponed due to the ensuing Eurozone financial crisis. However, the source believes that F1 has increased in value in the meantime.

“If you look at Discovery Channel and other comparables, the market is up 25% since we tried to IPO last year so just mathematically applying the new pricing for the company, it is worth 25% more. I certainly think you could shoot for $12bn.”

Formula One has certainly been booming lately thanks to some great on-track racing, and the source is confident that the flotation will be completed within the next twelve months.

“Sport businesses and content businesses are in significant demand and F1 is one of the very best. I don’t see why the IPO would not be on track for the next 12 months.”

Even with Bernie Ecclestone currently fighting a bribery charge in Germany, the financial future of the sport appears to be secure and planned out.

Image courtesy of Octane Photographic.

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