Formula 1 IPO – Owner may seek more than $2 billion image

CVC Capital Partners Ltd. the company the owns a majority stake in Formula One may seek more than $2 billion from an initial public offering, Bloomberg said Tuesday.

The private equity firm may sell a stake of about 20 percent in Formula One, one person said, asking not to be identified as the information is private.

CVC Capital Partners Ltd. already hired Goldman Sachs Group Inc. (GS) last month to explore a possible sale of a stake in Formula One in an initial public offering.

An IPO by Formula One would be a boost to Singapore, which is vying with Hong Kong to attract companies from across the world seeking to capitalize on Asia’s growing economies. Formula One Chief Executive Officer Bernie Ecclestone said he would remain in his position under CVC’s plans.

Formula One events generate huge sums of money worldwide, with estimates that 2012 revenue will reach $2 billion.

In a recent report, Formula Money added that new races in the United States and Russia would help boost income from F1’s commercial rights by almost 50 percent to $2.9 billion by 2015.