* SEA says offering shares at 3.2-4.3 euros each
* Plans to float as much as 23.8 percent of company - source
* Offer to include both new and existing shares - source
MILAN, Nov 16 Milan airport operator SEA hopes
to be valued at as much as 1.2 billion euros ($1.5 billion) on
its stock market debut in Milan next month, the company said on
The initial public offering (IPO) of up to 23.8 percent in
the company will see the Province of Milan sell its stake of
34.1 million shares, a source close to the deal said, adding
that the listing would also include 24.4 million new shares.
SEA said in a statement on Friday that it had set a price
range of 3.2 euros to 4.3 euros each for the shares, making the
total size of the offering as much as 252 million euros ($322.36
million). The price range values the company at between 878
million euros and 1.2 billion euros, it said later in the
The Province of Milan is selling its 14.6 stake to help fund
investments it needs to make. The City of Milan, the airport
operator's largest shareholder with a 56 percent stake, does not
plan to sell any shares.
After months of inactivity, Europe saw a pick-up in share
sales in October, with companies including German insurer Talanx
, Britain's Direct Line and Telefonica
Deutschland successfully completing market debuts.
The market is still far from robust, however, with investors
unsettled by a faltering global economy and governments needing
to rein in deficits on both sides of the Atlantic.
SEA, which runs the two airports of Malpensa and Linate in
Italy's financial capital, plans to set a final price for the
listing on December 3 and will make its debut on the Milan
market three days later, the source said.
The IPO will also include an over-allotment option of 8.8
Infrastructure investment fund F2i, which bought a stake of
just under 30 percent in SEA last December when the company was
valued at around 1.3 billion euros, has been keen for SEA to
float a larger stake, a second source said.
In the first nine months of the year SEA saw a 5.3 percent
rise in core earnings to 126.9 million euros, while debt at the
end of September amounted to 334.5 million euros.
In the first 10 months of the year the number of passengers
at the airports fell 2 percent to around 23.7 million.
Banca IMI, Mediobanca, Morgan Stanley and UniCredit are
coordinating the sale, and are bookrunners along with BNP
Paribas and Deutsche Bank.