The holding that controls tyres-to-telecoms group Pirelli has set an indicative value on its property management arm of between 950 million euros and 1.15 billion euros ahead of an initial public offering.
The holding that controls tyres-to-telecoms group Pirelli has set an indicative value on its property management arm of between 950 million euros and 1.15 billion euros ahead of an initial public offering.
Pirelli & C. said in a statement late on Saturday that according to the indicative offer valuation of share capital of Pirelli & C. Real Estate company, its share price is set in a range between 26 and 31.5 euros.
Pirelli & C. Real Estate kicks off its IPO on June 17 and will run through June 19 and be priced on June 21. The roadshow starts in Milan on June 10.
'The indicative offer valuation range is in no way binding to the definition of a maximum price and an offer price which therefore may be determined outside of the indicative range,' the statement said.
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 about 1.6 billion euros, owns 47 percent of Pirelli, in turn worth 2.6 billion euros.
The IPO will involve the sale of 14.15 million shares, with about one-third of that representing a capital increase and the other two-thirds the sale of shares held by Pirelli & Co.
Gains from the capital increase, net of commissions, are expected to be between 100.6-121.8 million euros, according to the statement.
An additional 2.1 million shares could be sold to joint book runners Mediobanca and Morgan Stanley in a green-shoe overallotment portion, 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.
Pirelli & C. 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.
(source: Reuters)
