By Elisa Anzolin and Pablo Mayo Cerqueiro
MILAN/LONDON (Reuters) - Italian steelmaker Feralpi Group is sounding out investment banks to arrange a possible initial public offering (IPO), three sources familiar with the matter told Reuters.
Reuters reported in early April that family-owned Feralpi was working with advisers at Lazard (NYSE:LAZ) to devise strategic options, including a stock market listing.
Banks were subsequently invited to pitch for a role in a share sale, said the sources, who declined to be named discussing private matters.
Deliberations are preliminary and may not lead to any transaction, they said.
A spokesperson for Feralpi declined to comment.
Founded in 1968 in Northern Italy by the Pasini family, Feralpi manufactures steel products for construction and special applications.
The group reported revenues of 1.93 billion euros ($2.12 billion) in 2021, with earnings before interest, tax, depreciation of amortisation (EBITDA) of 272 million euros, according to the latest figures on its website.
Feralpi's actions come as the European IPO market battles to recover from a slump in activity prompted by last year's sudden rise in interest rates and economic uncertainty.
Milan has been one of the more active venues in Europe, hosting the region's largest IPO so far this year, Italian gambling company Lottomatica.
Shares in Lottomatica, like other companies which have made market debuts this year, have sunk in the aftermarket.
But Italian industrial company EuroGroup Laminations is trading at around its February IPO price, offering a glimmer of hope for investment bankers.
Buyout group EQT (NYSE:EQT) has also invited bank pitches for a potential IPO of Italian medical devices group LimaCorporate, Reuters reported last week.
($1 = 0.9084 euros)