Online video service powers Nine's record $3bn IPO NINE Entertainment will launch a $3 billion IPO in early December, heralding the biggest float of a privately owned company in the local market since 2010. A key component of the prospectus ahead of a float on the Australian Securities Exchange will be a plan to launch an online subscription video service, The Australian understands. Nine is expected to make an announcement about a Netflix-style offering as soon as the government prepares to fast-track the rollout of the National Broadband Network, which will provide the necessary bandwidth to support a streaming service for programs and movies. Sources said Nine's shareholders -- US hedge funds Apollo Global Management and Oaktree Capital Group -- had determined that the most logical time to list was at the end of the year as lower interest rates and strengthening global markets propel the sharemarket higher. Nine's owners have also been encouraged by an uptick in the local advertising market, and a boost in business confidence on the back of the Coalition's decisive federal election victory. The company, once owned by the Packer family, will be valued at an earnings before interest, tax and depreciation multiple of just over nine times. This means Nine will be capitalised at about $3bn, making it a bigger sharemarket listing than the previous comparable float of a privately owned firm -- that of department store Myer, which floated in 2009 with a market capitalisation of $2.4bn. The privatisation of rail and freight operator QR National, which was wholly government-owned prior to the listing, raised $4.6bn in 2010. Nine has decided to pull the trigger in the immediate aftermath of a US roadshow early this month involving 40 presentations with potential investors. The size of the float is yet to be determined but will aim to raise between $500 million and $1.2bn to pay down a $1.1bn debt and repay Apollo and Oaktree. The decision on the IPO came as Nine signed an agreement with billionaire Bruce Gordon's WIN Corporation to give it a first look on buying WIN's remaining regional television stations once the 75 per cent population reach rule is scrapped. The repeal of the regulation will enable metropolitan television broadcasters to merge with their regional counterparts. It has not been formally flagged by the government, but media companies are confident it will be abolished within one to two years, and Communications Minister Malcolm Turnbull is known to be in favour of the reform. It was agreed in principle by Mr Gyngell and Mr Gordon last month and formally signed on Monday night. Sources said KPMG Corporate Finance acted on behalf of WIN, with UBS representing Nine. They said the "good faith" agreement gave Nine the chance to lodge a bid before other potential bidders if Mr Gordon decided to sell. Nine is granted a period of weeks to table an offer under the terms of the agreement, but it does not prevent other interested parties such as Ten Network and Southern Cross Media making bids.