Pirelli property arm caps float price

Pirelli & C. Real Estate, due to launch its IPO this week, has set a maximum flotation price of 31.5 euros, at the top of a 26-31.5 euro range announced before last weekÂ's roadshow.

At that price, announced on Saturday, the property arm of Pirelli & C holding would be valued at up to 1.28 billion euros (820 million pounds), if a 'greenshoe' over-allotment option is exercised.

Pirelli Real EstateÂ's initial public offering (IPO) starts on Monday and runs until June 19 at 12:45 British time. Shares in the property group should start trading on June 25.

The property group said its shares would be sold in minimum lots of 100 shares, worth 3,150 euros.

Investors will be offered 14.15 million shares, about a third of which will be created in a capital increase and the rest of which are currently owned by Pirelli & C, which also controls tyres-to-telecoms group Pirelli.

A quarter of Pirelli Real EstateÂ's shares will be offered to retail investors in Italy with the other 75 percent going to institutional investors, excluding those in the United States.

An additional 2.1 million shares could be sold to joint book runners Mediobanca and Morgan Stanley in a greenshoe over-allotment portion, which would boost the offer to 40 percent of Pirelli Real EstateÂ's capital.

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)

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