MILAN (Reuters) - Industrie De Nora will become the first company to debut on Italy's main market since Russia's invasion of Ukraine derailed new listings, though it priced its share sale at the bottom of an indicative range.
Several European companies have postponed planned initial public offerings (IPO) due to market volatility in recent weeks, with Italian energy group Eni last week delaying plans to list its retail and renewables business.
Electrode maker De Nora priced its IPO at 13.50 euros per share, at the bottom of a range stretching up to 16.50 euros, securing about 40% of the offer from two cornerstone investors.
At the IPO price, it will have a market capitalisation of 2.7 billion euros ($2.9 billion). Trading in the shares will start on the Milan stock exchange on Thursday.
The company said it received orders for 3.5 times the offer at the IPO price, with strong demand from institutional investors.
De Nora is raising 200 million euros of new capital, while existing investors will get 274 million euros from selling shares. The total offer will reach 545 million euros if an over-allotment option is exercised.
The Garrone Mondini family, which controls Italian energy company ERG, and the family office of Ruthi Wertheimer, which specialises in minority long-term investments in advanced technology industrial firms led by families and entrepreneurs, each pledged to invest up to 100 million euros in the IPO.
The company will use the proceeds to grow its existing business and fund any acquisitions of compatible businesses, a bookrunner said.
The selling shareholders have agreed not sell any more shares for 180 days, and the company for 365 days, one of the bookrunners said.
"A lengthy preparation and fast sale process were crucial for the success of the share sale," Credit Suisse Head of Equity Capital Markets for Southern Europe Paolo Celesia said.
Credit Suisse and Goldman Sachs (NYSE:GS) International are joint global coordinators and joint bookrunners for De Nora, while BofA Securities, Mediobanca (OTC:MDIBY) and UniCredit are joint bookrunners.
Latham & Watkins is legal adviser to the company, while legal firm Pedersoli is advising the De Nora family and Clifford Chance is advising the joint global coordinators and joint bookrunners.
($1 = 0.9460 euros)