MC EXCLUSIVE Sebi nod in, ICICI Pru AMC eyeing IPO launch in December at $12-12.5 bn valuation

ICICI Prudential

India's second largest asset management company in terms of managed assets, ICICI Prudential Asset Management Company has received the nod from market regulator Sebi for its proposed initial public offer (IPO), a pure OFS or offer for sale by Britain's Prudential Plc, multiple industry sources in the know told Moneycontrol.

The 51:49 joint venture has existed for 26 years with ICICI Bank tying up with Prudential Plc back in 1998.

"The Sebi approval is in and the plan is for the IPO to be launched in the second week of December with the listing likely by December 19," said one of the people above.

ICICI Prudential AMC is targeting a valuation of $12 billion (Rs 1,07,091 crore) to $12.5 billion (Rs 1,11,438 crore) for the IPO, a second person added.

Since the British JV partner Prudential Plc plans to offload 10 per cent stake as part of the OFS or offer for sale, the potential size of the issue is likely to be between $1.2 billion to $1.25 billion.

Both the persons above spoke to Moneycontrol on the condition of anonymity.

When contacted, Prudential Plc said - "We don't comment on market speculation." Mails sent to ICICI Bank and ICICI Prudential AMC were left unanswered at the time of publishing this article.

If plans fructify, this would be the fifth listing from the ICICI Group after ICICI Bank, ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company and ICICI Securities.

On June 10, Moneycontrol was the first to report that ICICI Prudential AMC had kicked off its mega listing plans, engaged an army of up to 17 investment banks, arguably an all-time record for size of IPO syndicates in India, and was planning to file its draft red herring prospectus (DRHP) by early July.

Earlier in the year on February 12, Prudential Plc announced that it is evaluating a potential listing of ICICI Prudential Asset Management Company Limited involving the partial divestment of its shares, subject to market conditions, requisite approvals and other considerations.

"It is intended that following the completion of such a divestment, the net proceeds would be returned to shareholders. We will provide a further update at an appropriate time. India is a strategically important market for Prudential with compelling growth prospects. We will continue to explore opportunities to grow our businesses in the market," the official statement added.

On the same day, ICICI Bank acknowledged the Prudential announcement and said, "We intend to retain our majority shareholding in ICICI Prudential Asset Management Company, ensuring our long-term commitment."