Private equity firm Inflexion looks set to be considering its third floatation of the year with the initial public offering of the online travel agency On the Beach.
It is understood by the media that Inflexion has asked several bankers to pitch for the company’s IPO. It is believed that the company is looking for a market valuation of around £200 million which will mean it is around ten times earnings of £20m. Such a large valuation would mean a significant return for Inflexion, which bought the business from Equity Partners for £73 million last October.
Inflexion has already floated two other companies on the London Stock Exchange this year, with National Accident Helpline missing its anticipated market value of £100 million, instead going for around £80m. It also sold IT services company FDM to more success.
On the Beach is expected to raise such a high value because the company is gearing up for an international expansion, having recently launched a Scandinavian website, with plans to create sites in Dubai and Germany. The company will also expand its long-haul division to include more destinations, starting with Dubai, with plans to add the Far East and Caribbean later on.