David Gyngell to reap rewards of Nine Entertainment listing Nine prepares for market Source: HeraldSun NINE Entertainment will hit the market with a value above $2 billion in a float that positions chief David Gyngell as one of the best-paid executives in the nation. The company, owner of the Nine Network, and its hedge-fund owners expect to raise up to $697.3 million when it lists on the Australian Securities Exchange on December 6. It will be the biggest float of a privately owned company in Australia since 2009 and give the group a market capitalisation of $1.9 billion to $2.1 billion. Nine's enterprise value, which includes debt, will tip the scales at up to $2.8 billion. The prospectus, released yesterday, shows shares are expected to sell for $2.05 to $2.35 in the float. Mr Gyngell, who last year engineered the deal with US hedge funds to save the network from receivership, is set to make up to $17 million in bonuses and shares from the listing. This includes $10 million in shares in keeping with long-term contracts, $4.5 million worth of performance rights and a $2.5 million cash bonus if the deal goes ahead. It is on top of his $2 million annual pay packet as part of a remuneration deal struck under previous owner CVC Asia Pacific. Mr Gyngell told BusinessDaily yesterday that the time was right for the initial public offering. ``You look at interest rates, you look at the change of government and the business acumen of Joe Hockey and Tony Abbott and you say this would be a good time," he said. The network's hedge-fund owners wanted to see the listing by the middle of next year. Mr Gyngell said Nine's string of deals in recent months meant it was "in good shape" to go public. Among them, it has bought the Perth and Adelaide stations that carry the Nine brand from regional partner Win TV, and bought Microsoft out of their joint venture Mi9, owner of the NineMSN website. ``A listing on the ASX will help us to continue our strong momentum and consolidate our position as a leading free to air TV network in Australia," Mr Gyngell said. He is now set for a three-week tour of the US, UK and Asia to meet large institutional investors. The network is forecasting revenue to increase almost 5 per cent to $1.56 billion in the year to next June, while net profit is projected to increase more than 2 per cent to $139.5 million. Nine will issue 131 million new shares, bringing the total shares in the market to 931 million. New shareholders are expected to hold up to 33 per cent of the shares, with existing shareholders, including hedge funds Apollo Global Management and Oaktree Capital to hold the rest. Mr Gyngell moved to address fears the hedge funds were looking for a quick exit. ``They've demonstrated a longevity in their decision making," he said. ``We've got the best of both worlds - they've sold enough to stimulate enough interest and also taken a long-term view.