Hostelworld valued at €245m following IPO

Mark Hilliard

Hostelworld, the Irish travel website, has announced final details of its stock market floatation with an IPO valuing the company at €245 million. The shares have begun conditional trading this morning, rising some 5 per cent above the issue price.

It has priced 71,718,432 ordinary shares at 185 pence per share. The dual flotation will see stock trade on both the Dublin and London markets.

“We are delighted to have reached this milestone in Hostelworld’s development and welcome all new shareholders,” said Feargal Mooney, chief executive.

“The IPO will further raise our already strong brand awareness in our growing and worldwide marketplace, enhance the group’s profile with investors, business partners and customers and enable access, should it be required, to capital markets to support future growth.”

Today’s offer is expected to raise €173.7 million in net proceeds and is believed to have been over-subscribed. The US private equity firm Hellman & Friedman will immediately hold just under 19.8 per cent of the stock.

The company, which also owns Hostels. com and HostelBookers.com, was reported to have appointed broker Numis Securities as advisers.

Hostelworld group comes to the market debt free and cash generative.

Its founder Ray Nolan sold the business to Hellman & Friedman in 2009 for €202.5 million. Mr Nolan ultimately realised €100 million from the deal.

Web Reservations acquired HostelBookers.com in April 2013 for €100 million, in a deal that valued the group at more than €400 million.