* Shares to be offered at 19.50-25.50 euros
* Net proceeds of 87 mln eur for debt payments, acquisitions
* Deutsche Bank, Goldman Sachs, JP Morgan joint bookrunners
(Adds details from prospectus on outlook, proceeds,
By Georgina Prodhan and Michael Shields
VIENNA, Nov 13 Austrian packaging group
Constantia Flexibles (IPO-COFH.VI) plans to raise up to 821
million euros ($1.10 billion) in an initial public offering in
Frankfurt and Vienna on Nov. 27, valuing the firm at up to 1.43
Constantia, which ranks number two in Europe behind
Australia's Amcor Ltd, said it would price its new
shares in a range of 19.50 to 25.50 euros each and would offer
up to 32.2 million shares for sale or 57.5 percent of the
Reuters had reported last week that Constantia hoped to
carry out the IPO before the U.S. Thanksgiving holiday on Nov.
28 and may raise as much as 800 million euros.
The joint bookrunners are Deutsche Bank, Goldman
Sachs and JP Morgan, said Constantia, which makes
aluminium-foil, paper and plastic-film packaging and labels for
the food, pharmaceutical and beverage industries.
The offering comprises up to 5.13 million new shares and up
to 24.08 million from the holdings of JP Morgan's One Equity
Partners (OEP), up to a maximum of 28 million shares, plus an
over-allotment option of up to 4.2 million from OEP.
Based on a price at the mid-point of the range, Constantia
Flexibles will receive net proceeds of 87 million euros from the
sale of the new shares, the company said in its prospectus
published on Wednesday.
It will use the funds to pay down debt, finance acquisitions
and for general corporate purposes, the company said, adding
that it had 50 possible acquisition targets in view with annual
sales of between 30 million and 100 million euros each.
Constantia, which ranks number four in the world behind
Amcor, U.S. based Bemis Co and Sealed Air Corp,
said it was confident of increasing sales and core earnings this
year and planned a dividend payout policy of 20-30 percent of
In the first nine months, sales rose 24 percent to 1.23
billion euros and earnings before interest, tax, depreciation
and amortisation (EBITDA) rose 22 percent to 175 million euros.
Net income attributble to shareholders dropped to 18 million
euros from 43 million euros a year earlier.
Constantia said OEP would make 611 million euros in net
proceeds from the share sale, at a mid-range price, and would be
subject to a lock-up period of nine months.
Bookbuilding will take place in Germany and Austria between
Nov. 14 and Nov. 26 and the shares are due to be listed on the
Prime Standard of the Frankfurt Stock Exchange and the Second
Regulated Market of the Vienna Stock Exchange on Nov. 27.
Underwriting banks get a base commission of 2.6 percent of
gross proceeds from the offering, while the joint global
cooordinators may get an additional discretionary fee of up to
1.05 percent, according to the prospectus. OEP will pay the
underwriters a commission of 1.56 percent for shares purchased
via the greenshoe option.
($1 = 0.7442 euros)
(Editing by Tom Pfeiffer and Elaine Hardcastle)