(Adds details, background)
MILAN, June 16 Italian shipmaker Fincantieri
launched an initial public offering on Monday, seeking cash for
projects in the pipeline and to fund potential acquisitions.
The state-owned company, which plans to offer up to a 38.2
percent stake, does not plan to pay dividends for the next three
years, Fincantieri executives attending a roadshow in Milan
said. It will instead focus on executing backlogged orders worth
9 billion euros ($12.25 billion).
The maker of vessels ranging from luxury yachts to military
aircraft carriers had another 6 billion euros worth of
preliminary deals in place, which could translate into final
contracts, allowing the company to exploit its shipyards to the
full, they said.
"Executing the current backlog will allow us a 50 percent
growth in revenues in future years, lifting the company's
margins as well," Chief Executive Giuseppe Bono said at the
The company said on Friday it would offer a stake of up to
38.2 percent, mostly made up of new shares, at a price range
between 0.78 euros and 1 euro per share.
That would value the company, which is wholly owned by
Italian state lender Cassa Depositi e Prestiti (CDP) through its
Fintecna unit, at between 1.57 billion and 1.84 billion euros,
and the initial public share offering at up to 704 million
Fintecna will at best be able to cash in 200 million euros
from the listing, meaning the Italian treasury does not stand to
gain much from the privatisation.
"We are launching a cash call to have a solid capital
structure to meet future challenges," Bono said, adding the
market was going through a consolidation process that could
offer opportunities for the Italian group.
In 2013 the Italian company completed the acquisition of a
55.6 percent stake in Norwegian shipmaker STX OSV, later renamed
($1 = 0.7345 euros)
(Reporting by Elisa Anzolin, writing by Francesca Landini;
Editing by Susan Fenton)