Simpson Thacher prepares KKR for IPO spree

Simpson Thacher & Bartlett is understood to be advising long-standing client Kohlberg Kravis & Roberts (KKR) on the flotation of portfolio company Avago Technologies on the New York Stock Exchange.

It is understood that the firm is advising the private equity house as it prepares to float Avago, a semiconductor company that KKR bought in 2005.

Reports indicate that the Avago listing was originally expected to raise $400m (£240.5m), but the size of the offer has since risen to $500m (£300.6m) after a successful roadshow last week.

The news comes after it emerged that KKR is also preparing to float up to five other companies including Toys R Us, the toy retail chain, and HCA, the US hospitals group. The listings could potentially raise billions of dollars for the private equity house, which is known for highly-leveraged deals and has kept a low profile since the beginning of the credit crunch.

Simpson Thacher has been a regular KKR adviser for some time, most recently advising on the company’s merger with KKR Private Equity Investors (KPE) last month. New York partner Alan Klein led the team on that transaction (21 July 2009).

Earlier this year Simpson Thacher was also instructed on Alliance Boots’ £400m debt buyback, which saw KKR buy back a portion of the debt used to finance its 2007 buyout of Alliance Boots for 70p per share. London partner Ian Barratt and New York partner Mark Pflug led on that deal (25 May 2009).

Simpson Thacher declined to comment.