Italy’s De Nora delivers on IPO, but prices at bottom of range
MILAN (Reuters) – Industrie De Nora will turn into the primary firm to debut on Italy’s principal market since Russia’s invasion of Ukraine derailed new listings, although it priced its share sale on the backside of an indicative vary.
A number of European corporations have postponed deliberate preliminary public choices (IPO) as a result of market volatility in latest weeks, with Italian vitality group Eni final week delaying plans to record its retail and renewables enterprise.
Electrode maker De Nora priced its IPO at 13.50 euros per share, on the backside of a variety stretching as much as 16.50 euros, securing about 40% of the provide from two cornerstone traders.
On the IPO worth, it should have a market capitalisation of two.7 billion euros ($2.9 billion). Buying and selling within the shares will begin on the Milan inventory alternate on Thursday.
The corporate stated it acquired orders for 3.5 occasions the provide on the IPO worth, with sturdy demand from institutional traders.
De Nora is elevating 200 million euros of recent capital, whereas current traders will get 274 million euros from promoting shares. The overall provide will attain 545 million euros if an over-allotment possibility is exercised.
The Garrone Mondini household, which controls Italian vitality firm ERG, and the household workplace of Ruthi Wertheimer, which specialises in minority long-term investments in superior expertise industrial companies led by households and entrepreneurs, every pledged to speculate as much as 100 million euros within the IPO.
The corporate will use the proceeds to develop its current enterprise and fund any acquisitions of suitable companies, a bookrunner stated.
The promoting shareholders have agreed not promote any extra shares for 180 days, and the corporate for one year, one of many bookrunners stated.
“A prolonged preparation and quick sale course of had been essential for the success of the share sale,” Credit score Suisse Head of Fairness Capital Markets for Southern Europe Paolo Celesia stated.
Credit score Suisse and Goldman Sachs Worldwide are joint world coordinators and joint bookrunners for De Nora, whereas BofA Securities, Mediobanca and UniCredit are joint bookrunners.
Latham & Watkins is authorized adviser to the corporate, whereas authorized agency Pedersoli is advising the De Nora household and Clifford Probability is advising the joint world coordinators and joint bookrunners.
($1 = 0.9460 euros)
(Reporting by Andres Gonzalez, Francesca Landini, Francesco Zecchini and Lucy Raitano; Enhancing by Jason Neely and Mark Potter)
