US Spanish-language broadcaster Univision plans IPO

Univision Holdings, the leading Spanish-speaking broadcaster in the United States, announced plans Thursday to launch a US stock offering aimed at investors keen to capitalize on the growing Latino market.

Univision, which owns 60 television stations and 67 radio stations, plans to raise $100 million, although the amount could be lifted, according to a US securities filing.

"We own the leading and growing portfolio of Spanish-language media platforms in the US across broadcast and cable television, digital and radio, enhancing our value to both our distribution and marketing partners as the gateway to Hispanic America," the filing said.

"US Hispanics are the youngest demographic as of 2012, have experienced the largest growth as of 2012 and have rapidly growing buying power as of February 2014. Marketers are increasingly targeting Hispanic America and its expanding economic, cultural and political influence."

Univision, which is based in New York, reported net income of $1.9 million in 2014 on revenues of $2.91 billion. Revenues have risen steadily the last five years from $2.25 billion in 2010.

The company will have the ticker "UVN." Univision has not yet decided whether shares will trade on the New York Stock Exchange or the Nasdaq Stock Market following the IPO.

It said it will use the proceeds to repay indebtedness and for general corporate purposes.

24/7 Wall Street called Univision "one of the biggest and most hoped-for initial public offerings for 2015," adding that "recent chatter" has said the company could be worth close to $20 billion.

"What will drive the cart here is that Univision is the leader in the Spanish-language broadcast and content in media," said 24/7 Wall Street. "It has the top demographic that is still growing in America."

Univision had traded on the NYSE before being acquired in 2007 by an investor group that included the funds Madison Dearborn Partners, Thomas Lee Partners and Saban Capital Group. All of these parties are still listed as major Univision stockholders.

In 2010, the Mexican television giant Grupo Televisa invested $1.2 billion in Univision, part of a strategic relationship that includes royalty payments from Univision to Televisa to broadcast Televisa content in the US.

Under newly amended terms, Televisa will hold about 22 percent of voting rights of Univision's common stock, according to a joint news release Thursday from Univision and Televisa.