Private equity firm CVC Capital Partners CVC.UL will cut its ownership stake to about 30 percent in the Formula One motor racing business after the company's up to $3 billion IPO by selling shares on the public market, sources said on Thursday.

CVC currently holds about 42 percent of Formula One after it recently sold a $1.6 billion stake to a group of investors, including the investment management firm BlackRock (BLK.N).

That sale was key to set a benchmark valuation of Formula One for CVC and current shareholders, including billionaire F1 chief Bernie Ecclestone, the estate of bankrupt investment bank Lehman Brothers and JPMorgan (JPM.N).

Both Lehman and JPMorgan are expected to sell most of their stakes in the IPO, two sources with direct knowledge of the plans said. Lehman owns about 15 percent and JPMorgan less than 3 percent.

CVC officials declined to comment on the IPO.

Formula One will seek a valuation of about 18-22 times its earnings for the IPO, added the sources, who were not authorized to speak publicly on the matter.

Formula One will offer stapled securities consisting of equity and units of a shareholders loan, the sources said.

The structure of the stapled securities, though unusual in Asia, is common in the United Kingdom and has also been used in Australia for tax reasons. The securities are expected to pay a yield of between 4 percent and 4.5 percent.

Formula One is a global series of 20 races each year that draw television audiences of more than 500 million. The sport has expanded from its European base to lucrative markets in Asia and the Middle East and the Singapore listing would tap into Asian appetite for renowned brands.

The company earlier this month unveiled a $1.8 billion refinancing package to help lay the groundwork for the IPO, which is expected to be completed in June.

Goldman Sachs (GS.N), Morgan Stanley (MS.N) and UBS (UBSN.VX) were hired to lead the IPO. Spain's Banco Santander (SAN.MC), Singapore's DBS Group (DBSM.SI) and Malaysia's CIMB (CIMB.KL) will also act as joint bookrunners on the deal.

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