The electric motor and generator component manufacturer EuroGroup Laminations announced on Tuesday that it planned to raise up to 983 million euros ($1.06 billion) in an initial public offering (IPO) in Milan.
The anticipated IPO will come after German online hosting company IONOS, whose Monday offer for its Frankfurt debut began as a sign that the public listings market is warming up after a challenging 2022.
According to EuroGroup Laminations, the value of its offer—which includes the issuance of 250 million additional shares—is anticipated to range between 416 million and 448 million euros.
The remaining shares will be sold by French private equity firm Tikehau and the five families that control the group through holding company EMS.
The capital increase’s profits, according to EuroGroup, will be used to enhance its capital structure, expand geographically, develop new technologies, and boost production capacity (including opening new manufacturing locations).
Additionally, it stated: “The company may also pursue external growth prospects if the opportunity arises.”
After the capital increase, EuroGroup Laminations announced a price range of 5 to 6 euros per ordinary share, or an estimated market value of 861 to 983 million euros.
The deal is anticipated to last from February 1 through February 8.
Making stators and rotors for electric motors and generators, EuroGroup anticipates having a big impact on the switch to electric vehicles.
In the first nine months of 2022, it recorded revenues of 651 million euros and a core profit margin of roughly 11.8%.
Joint worldwide coordinators for the IPO are JP Morgan (JPM.N), BNP Paribas (BNPP.PA), Intesa Sanpaolo (ISP.MI), and UniCredit (CRDI.MI). Providing financial advice is Rothschild & Co. The company’s legal counsel is provided by Latham & Watkins, while the joint worldwide coordinators’ legal counsel is provided by Linklaters.
($1 = 0.9249 euros)