The holding that controls tyres-to-telecoms group Pirelli will begin its property management armÂ's initial public offering on June 17, according to a prospectus published in newspapers on Thursday. The IPO will run through June 19 and will be priced on June 21, said Pirelli & C Real Estate.
The IPO is widely expected to value the Pirelli Real Estate company at more than one billion euros. Parent company Pirelli & C., which has a current market value of 1.5 billion euros, has a 47 percent in Pirelli, in turn worth 2.7 billion euros.
Pirelli has effective control over the Telecom Italia group via a 60 percent stake in holding Olimpia which last year co-led a takeover of holding Olivetti.
Pirelli Real Estate, which began in the 1980s as a holding company for the industrial property assets of the Pirelli tyres and cable group, has since expanded to become one of the Italian property marketÂ's main players, partnering Morgan StanleyÂ's property fund in several ventures.
Pirelli Real Estate said on Wednesday stock market regulator Consob had given it the green light for the offering, adding it would begin the promotional road show for the offer in Milan on June 10.
The IPO, the prospectus said, will involve the sale of 14.15 million shares, with about one-third of that comprising a capital increase and the other two-thirds from the sale of shares held by Pirelli & C.
An additional 2.1 million shares could be sold to joint book runners Mediobanca and Morgan Stanley in a green-shoe overallotment, which would boost the offer to 40 percent of Pirelli Real EstateÂ's capital. The coordinators are Mediobanca, Morgan Stanley and Lazard.
A minimum of 3.5 million shares will be offered to retail investors in Italy, while a portion will be offered in a private placement to institutional investors in Italy and abroad, with the exception of the U.S., the prospectus said.