UPDATE 1-German 3D printer maker SLM sets price range for share sale

Fri Apr 25, 2014 12:47pm EDT

* SLM Solutions plans Frankfurt market debut on May 9

* Offer period to run from April 28 to May 8

* To offer 4.17 mln new shares, 5.73 mln existing ones

* Sees 75 mln euros gross proceeds from capital increase (Adds offer period, expected free float following sale, managing banks)

FRANKFURT, April 25 (Reuters) - German 3D printer maker SLM Solutions has set the price range for its stock market listing at 18 euros to 23 euros and expects to make its Frankfurt stock exchange debut on May 9.

The price range would give the company an implied market capitalisation of 387 million euros.

SLM said on Friday it would offer 4.17 million new shares and 5.73 million existing ones, plus up to 1.35 million as an over-allotment option, giving it an issue volume of as much as 237.9 million euros ($328.8 million).

The capital increase will generate gross proceeds of about 75 million euros.

SLM specialises in selective laser melting (SLM) machines, which use a laser beam to fuse fine metallic powders together and create a three-dimensional object.

SLM Chief Executive Markus Rechlin told Reuters in an interview this month that the company was considering using some of the proceeds from the sale to buy a supplier of metal powders, one of its key input materials.

It also wants to use the money raised for investment in its sales and service business and to open offices in the United States, Japan and Singapore. It also plans to increase spending on research and development.

SLM generated 21.6 million euros of revenue in 2013 and 2.5 million euros in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA). Its listed peers trade at between 30 and 90 times their expected annual earnings, according to Reuters data, though some of those valuations have come down recently.

Shares of 3D printer makers such as 3D Systems, Stratasys, ExOne and U.S.-listed German peer Voxeljet have soared as the companies adapt to the consumer market a technology used by manufacturers for decades.

SLM's offer period will run from April 28 to May 8. The free float will come to about 61.5 percent following the sale, assuming placement of all shares including the over-allotment option.

Credit Suisse and Deutsche Bank are managing the offering. BHF Bank and Canaccord Genuity are co-lead managers and Equinet will act as selling agent.

SLM counts companies like GE, Alstom and rocket maker Space Exploration Technologies (SpaceX) as customers, which are interested in making complex three dimensional metallic objects.

($1 = 0.7236 Euros) (Reporting by Maria Sheahan. Editing by Jane Merriman)

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