The Dufry Group has announced that wholly-owned subsidiary Hudson Ltd. has filed for a proposed initial public offering (IPO) of its Class A common shares.

Hudson has lodged a registration form F-1 with the US Securities and Exchange Commission (SEC), but this is yet to become effective.

The number of *shares on offer and their price range are yet to be determined.

Dufry states that it intends to retain majority ownership of Hudson, with the offering expected to occur in 2018 subject to market conditions.

Credit Suisse, Morgan Stanley and UBS Investment Bank are acting as joint book-running managers for the proposed SEC offering.

“Due to the very strict SEC regulations, we are not allowed to give more information on the IPO until the company is public and for a subsequent period of 25 days,” commented a Dufry spokesperson.

HUDSON’S GROWING FOOTPRINT

The proposed IPO follows an announcement made by Dufry earlier this year to pursue an IPO and stock market listing for its North American business.

In an interview with TRBusiness last month, Dufry CEO Julián Díaz made clear that any consideration for a business labelled a ‘great asset’ to the Dufry engine would depend on the right evaluation.

The North American travel retailer Hudson operates 989 stores across 88 different transportation terminals and destinations, including concessions in 24 of 25 of the largest airports in the US and Canada.

Hudson Group’s turnover reached $1.4bn in the nine months ending 30 September this year. Source: US SEC.

As of 30 September, Hudson’s commercial footprint spans over one million square feet, covering travel essentials and convenience outlets, bookstores, duty free shops, speciality units, electronics shops, themed stores and F&B outlets under proprietary and through third-party brands.

According to the registration document, Hudson generated a turnover of $1.4bn with adjusted EBITDA at $131.m in the nine months this year.

Net turnover reached $1.7bn in 2016, with operating profit at $43.2m.

*According to the filing, following the offering there will be two classes of common shares outstanding: Class A common shares and Class B common shares.

The rights of both shareholders are identical, except with respect to voting and conversion. Each Class A common share is entitled to one vote per share and is not convertible into any other shares. Each class B common share is entitled to 10 votes per share and are convertible into one Class A common share.

Each class B common share will automatically convert into one Class A common share upon any transfer to a person or entity that is not an affiliate of the holder of the Class B Common share. In turn, all Class B shares will automatically convert into Class A common shares at the point when holders of Class B common shares cease to hold shares representing 10% or more of the total number of Class A and Class B common shares issued and outstanding.