Travelport aims to raise £1.9bn in float

Travelport, owner of the Galileo computerised travel reservations system, today announced its London Stock Exchange flotation would value the business at between $3.05 billion (£1.9 billion) and $3.45 billion.

The float is eagerly awaited as an indicator of the extent to which the market has improved. Retailer Pets At Home last week opted against floating and sold itself instead to a private equity house.

Travelport is 70 per cent owned by Blackstone. It, along with its fellow private equity shareholders will sell between 51 per cent and 58 per cent of the company. The Singapore sovereign wealth fund, the Government of Singapore Investment Corporation has agreed to pay $225 million for a 7.19 per cent stake.

As well as Galileo, Travelport also owns the Worldspan reservations system and wholesale hotel, travel and tour operator Gullivers Travel Associates.

Travelport was formed out of the acquisition by Blackstone of Galileo and Gullivers from Cendant in 2006, and Worldspan a year later.

The private equity giant's decision to float, rather than sell the business has raised expectations that it is also planning to do the same with Merlin, its fast-growing leisure business which owns the London Eye, Madame Tussauds and Legoland.