Apollo leads late-summer ECM block party
Apollo Global Management kicked off a busy week with a US$302m block sale of Hilton Grand Vacations shares on Tuesday night, followed by secondary blocks of Klaviyo from Summit Partners and Solventum from former parent 3m on Wednesday night.
After sitting idly for four years, Apollo cut its holding to 21.9% from 26.3% and can sell again in 45 days.
Wells Fargo, Deutsche Bank and Barclays offloaded their joint purchase of 7m shares at US$43.15, the bottom of the US$43.15–$43.65 reoffer range and a 4% discount to the previous closing price of US$44.97.
The vacation timeshare operator smoothed the task by repurchasing US$40m of the stock sold in the offering.
This was Apollo's first public sale of HGV since inheriting a one-third stake on the US$1.4bn sale of Diamond Resorts in March 2021, though the firm did dispose of US$163.4m of stock in a private placement in November last year.
The notoriously price-sensitive PE firm sold above the US$40.32 a share valuation struck on the HGV/Diamond merger back in 2021.
HGV shares closed Wednesday at US$45.99, above the reoffer price and the US$42.85 price the joint bookrunners paid, suggesting a profitable outcome all around.
Summit Partners resumed its exit of Klaviyo through a US$196.4m sponsor block, its first public selldown since the marketing software firm's high-profile IPO in September 2023.
Barclays offloaded its purchase of 6.5m shares at a US$30.22 fixed price, 4% below Wednesday's closing price of US$31.48 but slightly above the US$30 IPO price.
Klaviyo shares bounced back to US$31.03 on Thursday, suggesting a profitable outcome.
Summit, which sold 7.7m shares on Klaviyo's IPO, cut its stake to 13.8% from 16.8% of outstanding. The sponsor agreed to a 60-day lock-up, allowing it to return in mid-October.
3M was more proactive in selling US$655m of its remaining Solventum holdings after spinning off an 80% stake in its former medical products unit to shareholders last year.
Goldman Sachs and Bank of America offloaded their two-handed purchase of 8.8m shares at US$73.65, a 1% discount to the previous close and the top of a US$73.65–$74.38 range.
Solventum shares closed Thursday at US$73.20, below the US$73.45 paid by the joint bookrunners.
Shares traded above the reoffer price for most of Thursday's session, hitting an early high of US$74.66 before fading in the afternoon.
3M sold a quarter of its remaining stake. It still owns a 14.75% stake in its former unit and can sell again in 90 days.