More information on the upcoming Williams IPO emerged today. Shares will be launched in Frankfurt in Euros at a price range of €24 to €29. Given the number of shares for sale and the fact that they comprise 27.39% of the total, the mid-point of that values the business at €265m.
Although he is not named officially, the bulk of the shares up for grabs come from Patrick Head, who intends to retain a small stake even after the sale.
Today’s release from the financial PR company working with Williams trumpets the business as follows:
IPO positions Williams F1 for the future, providing a more sustainable ownership structure that will support its growth as an independent constructor
Offering follows three years of profits and a net cash position of £24.8m as at year-end 2010
Sponsorship is fully secured for 2011, complemented by stable commercial rights income.
Group has two businesses, Formula One and New Businesses, led by Williams Hybrid Power (WHP)
Growth to come through ability to unlock value of intellectual property and world class technology
No new capital being raised – existing shareholders selling down part of shareholding in order to allow investor participation
IPO increases ability to attract and retain key talent through share ownership
Public company status and standards viewed positively by sponsorship partners
Unique opportunity to invest in global sporting brand and leverage success of F1 business
The release goes on to say: “Williams is financially strong – the Group has been profitable for the last three years, has solid cash reserves, and its 2011 budget is already fully contracted.
“In addition to the overall growth of the sport, Williams’ long-term growth is driven by its ability to unlock the value of its brand, extensive IP and world class technology. The Group has a significant R&D business which is currently developing energy-saving applications and green technology. Already, Williams is working with companies like Porsche and Sainsbury’s to transfer its technology for everyday use.”
Meanwhile Frank Williams is quoted as saying: “This IPO marks a new era in the history of our team. Our future as an independent constructor is sustained by this listing, providing us the base from which to further grow.”
Chairman Adam Parr adds: “We have spent the past few years working to ensure a long-term future for the sport. Having accomplished this, the time is now right to assure Williams’ own future as an independent constructor, in this rapidly evolving industry.”
Even Bernie Ecclestone – who one could speculate may have reservations about details of FOM earnings emerging in the accounts of a listed company – has added his support: “I have known Frank Williams for more than 40 years. He has always run a very efficient organisation. He has never wanted to be taken over by either a car manufacturer or a large company. He has supported Formula One in many ways most of his life, as has Patrick Head. We want more Franks and Patricks. If I could buy shares in the Company I would.”
Adam Cooper F1 
So how and when can we buy shares??
Adam would you happen to know where the prospectus is filed? Not familiar with German authorities…
To both these comments answer is I don’t know – doing it in Germany when Williams fans are in the UK makes a lot of sense, doesn’t it! Imagine a Premier League club doing that… Am sure the prospectus will be a fascinating item in its own right.
Let me give my broker Gerhard at BayernLB a ring and see if he knows 😉
Yeah I think it would be very interesting to see the inner workings of a team, I’m afraid though the reason they put it in Germany, and do it under sophisticated investor exemptions in US is precisely because the rules are probably more lax with regards to what info they have to disclose, and the docs are not as easily found….