IPO of the Week: Altice

Josef Schuster
Dr. Josef Schuster is the founder of Chicago-based IPOX Schuster LLC and chief architect of the IPOX® Indexes. The IPOX methodology is implemented in an IPO and spin-off strategy at Catalyst Funds. Before founding IPOX, Dr. Schuster pursued his academic work on European IPOs in the Financial Markets Group (FMG) at the London School of Economics (LSE), where he completed his MSc and PhD and conceived the idea to start IPOX. He regularly appears in the media as an expert in global New Listings and respective investment products.

Company Description

Altice

Altice USA is a communications and media company. Altice provides pay television, broadband, telephony and advertising services to both residential and business customers through two acquired businesses: Optimum (Cablevision) and Suddenlink (Cequal). Altice USA is the U.S. unit of Altice N.V.

Business Model

Altice USA derives revenue primarily through monthly charges to residential, large enterprise and SMB customers of pay television, broadband, and telephony services. The company also generates revenue from the sale of advertising time and other add-on services.

IPO History

On 06/22/2017, the company completed its IPO on NYSE led by banks including J.P. Morgan, Morgan Stanley, Citigroup and Goldman Sachs. The share was priced at $30.00 per share, close to the higher end of the expected range of $27 to $31 per share. With a full subscription of 63,943,029 shares offered and an additional 12.17% over-allotment option fully exercised, Altice USA was valued at $22.11 billion at offer. Altice USA opened at $31.60/share, a 5.33% pop and climbed to close the first day with a 9.03% initial return. It was the second largest U.S. IPO in 2017. Altice USA was included in the IPOX® 100 U.S. Portfolio on 03/16/2018 and currently weighs approximately 1.56% of the portfolio.

Historical Performance

Growth Outlook

Industry Comparison

Company

Stock

Symbol

IPO/Spin-off

Date

Initial
Return

Offer to Date

2019

YTD

Beta to S&P

EPS

2018

Revenue

(in millions)

 Cash Dividend per share

Altice

ATUS US

6/22/2017

9.03%

-7.80%

50.12%

1.42

$0.03

9,566.61

2.035

AT&T

T US

AT&T went public on 7/19/1984

13.97%

0.88

$2.85

170,756.00

2.010

CenturyLink

CTL US

CenturyLink went public on 8/26/1988

-28.63%

1.40

($1.63)

23,443.00

2.16

Dish

DISH US

DISH Network went public on 7/30/1995

45.17%

1.40

$3.00

13,621.30

0.00