UPDATE 1-Sisal becomes second Itlaian company in a week to pull IPO plans
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By Francesca Landini
MILAN, July 11 (Reuters) - Italian gaming group Sisal said on Friday it had pulled plans for its initial public offering (IPO) due to unfavorable market conditions both in Italy and abroad.
Sisal became the second Italian company to cancel listing plans this week after drug group Rottapharm Madaus (IPO-ROTT.MI).
In June shipmaker Fincantieri had to downsize its share sale after pricing its stock at the bottom of its price range.
Sisal - which is owned by private equity firms Apax, Permira and Clessidra - had been seeking a Milan listing that could have valued the company at around 1 billion euros, including a capital increase that was part of the IPO. Sisal was due to set its final price next week.
According to a senior banker, the offering was hampered by current weakness in the financial markets, but investors also considered the IPO price too high and the company too burdened by debt.
Sisal, which reported revenues of 772 million euros last year, said in the prospectus for the offering that its debt was 1.2 billion euros at the end of March.
"We will use some of the proceeds coming from the listing to reimburse part of the debt," Sisal's Chief Executive Emilio Petrone said on July 2 at a presentation of the company's IPO. ($1 = 0.7331 Euros) (Additional reporting by Freya Berry and Elisa Anzolin,)