FRANKFURT Nov 14 Austrian packaging group
Constantia Flexibles said it expects its sales and
earnings to rise substantially in the near future, as it tries
to convince investors to buy shares in its stock market listing.
The company plans to increase its operating margin to
16-16.5 percent in the next two or three years, sources familiar
with Constantia's targets said.
In the first nine months of 2013, sales rose 24 percent to
1.23 billion euros and earnings before interest, tax,
depreciation and amortisation (EBITDA) increased 22 percent to
175 million euros, giving Constantia a margin of 14.2 percent.
"We see clear upside potential for our EBITDA margin," Chief
Executive Thomas Unger told journalists on Thursday, declining
to give a specific 2014 forecast. He added that urbanisation
across the globe was leading to an increased consumption of
The banks organising the initial public offering, which is
due to take place on Nov. 27, expect Constantia to post an
EBITDA of 265 million euros ($355 million) next year.
While listed peers such as Bemis, Amcor and
Sealed Air trade at an average multiple of 8.6 times
their expected operating earnings, Constantia's owners will
grant a discount to investors buying its shares.
"The IPO price range corresponds with a multiple of 6.8-7.9
times Constantia's 2014 EBITDA," said Christoph Stanger, equity
capital markets banker at Goldman Sachs, which is
organising the listing alongside Deutsche Bank and JP
Constantia plans to raise up to 821 million euros in the
share offer in Frankfurt and Vienna, valuing the firm at up to
1.43 billion euros.
The company said it would price its new shares in a range of
19.50 euros to 25.50 euros each and would offer up to 32.2
million shares, or 57.5 percent of the company, for sale.
It will use the funds to pay down debt, finance acquisitions
and for general corporate purposes, Unger said, adding it had 50
possible acquisition targets on his radar with annual sales of
between 30 million and 100 million euros each.
"But usually, we do only one or two acquisitions each year,"
The company, which makes aluminium-foil, paper and
plastic-film packaging and labels for the food, pharmaceutical
and beverage industries, ranks No.2 in Europe behind Amcor by