Travelport to float itself, raise $1.78 bn

TravelportLooking at the overall investment sentiment getting better, the online travel company, Travelport is planning to float itself on the London exchange. As a result, it expects to rise close to $1.78 billion.

Travelport includes operations like hotel and airline booking under the banner of Galileo. The total value of the company is close to $3.05 to $3.45 billion. This is higher than the earlier calculated value of $3 billion. However, experts believe that the company is overvalued.

Meanwhile, it plans to raise $1.77 billion by issuing new shares and is also looking forward to sell 7.19% to Singapore's' Sovereign Wealth Fund, Singapore Investment Corporation for $225 million.

The selling is expected to be closely watched by big players like Merlin Entertainments, the owner of Madame Tussauds and Legoland, and fashion group, New Look. The company is going for the financial plan in order to reduce its indebtness, which has become worse because of the recessionary phase that covered not only US or Europe but also the other parts of the world.

In other plans, Travelport has announced that its Global Distribution Systems will be looked after by Thomas Cook in UK.