Home Security Firm ADT Files For $2 Billion IPO

Electronic security company ADT is set to test the markets this week with an intent to sell 111,111,111 shares of common stock at a midpoint price of $18. The company provides residential and small business electronic security, fire protection, and other related alarm monitoring services and is among one of the leaders in the home security industry.

On Feb. 16, 2016, The ADT Corporation announced an agreement to be acquired by private equity funds managed by Apollo Global Management. Apollo Global Management also owns Protection 1, another leading full-service business and home security company with over 2 million customers. Together, the two companies serve nearly 10 million customers.

The company, however, has piled on more than $10 billion in debt, including a $750 million obligation to Koch Preferred Securities, an investment arm of the Koch Brothers. Proceeds from this offering will be used to redeem the debt.

ADT will trade on the NYSE and is planning to list under the proposed ticker symbol “ADT.” Goldman Sachs & Co. and Morgan Stanley & Co. will serve as the lead underwriters while BofA Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities and Apollo Global Securities will serve as additional underwriters.