(Adds details on offering, background)
MILAN May 30 Italy's biggest builder Salini
Impregilo said on Friday it was evaluating an equity
offering to institutional investors to increase its free float
and raise money for possible expansion.
The offering includes a portion of newly issued shares worth
up to 10 percent of its current share capital plus existing
shares held by its biggest investor Salini Costruttori, a family
"The proceeds from the capital increase ... are expected to
provide additional strength to Salini Impregilo's capital
structure and increase the group's flexibility to pursue its
2014-2017 targets," it said in a statement.
Salini Chief Financial Officer Massimo Ferrari said in April
Salini Costruttori would reduce its stake in the builder to
around 75 percent from 90 percent by the end of the summer.
Increasing the amount of shares that can be freely traded on
the market could make the stock more attractive to investors
because it makes the investment more liquid.
Salini Impregilo, whose order book of big civil engineering
projects includes work to broaden the Panama Canal and build the
giant Grand Renaissance Dam in Ethiopia, was formed in 2013
after Salini took over its largest peer Impregilo.
Under a new business plan unveiled in March, the company
said it would turn cash-positive by end-2017 and forecast
average annual orders of more than 7 billion euros ($9.55
billion) a year.
($1 = 0.7328 Euros)
(Reporting by Danilo Masoni, editing by Stephen Jewkes and