Financial

Bloomberg: Topgolf IPO Could Value Company at $4 Billion

Topgolf International Inc., an operator of driving ranges with a party atmosphere, has selected banks for an initial public offering that could value the company at about $4 billion, according to people familiar with the matter.

The Dallas-based company is working with banks including Morgan StanleyJPMorgan Chase & Co. and Bank of America Corp., said the people, who asked to not be identified because the matter is private. Its IPO could come as soon as this year, they said.

Topgolf, led by Chief Executive Officer Dolf Berle, has $525 million in outstanding debt, according to data compiled by Bloomberg.

Representatives for Topgolf, Morgan Stanley, JPMorgan and Bank of America declined to comment.

 

The company’s driving ranges, which bring the spirit of a bowling alley to the golf course, have bays that can accommodate up to six players who can track their balls electronically while ordering food and drinks. Some venues feature rooftop bars, restaurants, shops, pools and concert halls. The company has locations in the U.S., the U.K. and Australia, with others opening soon in Canada, Mexico and the United Arab Emirates, according to its website.

Private equity firm Providence Equity Partners made a “sizable minority investment” in Topgolf in 2016, according to a statement at the time.

The company’s backers also have included Callaway Golf Co., which acquired a minority stake with other investors in a deal completed in 2017. Callaway’s shares were already up Monday and climbed further on news of Topgolf’s plans. The shares, which rose as much as 2.3%, were up 1.8% to $21.67 at 2:42 p.m. in New York trading.

 

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Financial

Topgolf seeks to hire banks for IPO: sources

(Reuters) OCTOBER 8, 2019 –

U.S. golfing center operator Topgolf International Inc is in talks with investment banks about hiring underwriters for an initial public offering, people familiar with the matter said.

The IPO would come as Topgolf seeks capital to open new venues in the United States, Britain, Mexico, Dubai and Canada. It operates 52 U.S. golfing centers, three in Britain and one in Australia.

Topgolf has invited investment banks to pitch for roles on the IPO, which is planned for next year, one of the sources said.

The sources cautioned that the IPO plans had not been finalized and requested anonymity because the matter is confidential. Topgolf declined to comment.

Among Topgolf’s top investors are investment firm WestRiver Group, sporting goods company Callaway Golf Co (ELY.N), hockey team Carolina Hurricanes majority owner Thomas Dundon, and buyout firm Providence Equity Partners.

When Callaway increased its investment in Topgolf in December 2017, it valued its 14% stake at $290 million, suggesting an equity valuation for Topgolf of $2.1 billion. Topgolf’s estimated valuation currently could not be established.