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Italy's Ariston Thermo aims for Milan IPO in November - sources

MILAN, Sept 16 (Reuters) - Family-owned Italian heating solutions group Ariston Thermo is working to float 25-30% of its capital on the Milan bourse in November, two sources close to the matter said on Thursday.

Ariston Thermo has picked Mediobanca, Intesa Sanpaolo and Goldman Sachs as global coordinators for its initial public offering (IPO), the sources said.

The group, fully owned by Italy’s Merloni family, reported revenues of 1.66 billion euros ($2 billion) in 2020 with adjusted core earnings of 244 million euros.

Ariston Thermo, which competes with Sweden’s NIBE Industrier and U.S. firm A O Smith Corp, could be valued at double digit multiples to core earnings, a market source said, suggesting the float could be one of the biggest listings on the Milan bourse this year.

Ariston Thermo’s IPO, along with an offer being considered by Italy’s biggest make-up supplier Intercos, would mark a welcome revival for the Milan stock exchange where only three companies have listed on the main market this year.

Representatives for Ariston Thermo, Mediobanca, Intesa Sanpaolo and Goldman Sachs declined to comment.

In an interview in March with a weekly supplement of Corriere della Sera daily, Ariston Thermo Executive Chairman Paolo Merloni said wanting to pursue an acquisition could be a trigger for a stock market listing.

“We have been and would like to be an active part in the consolidation of the sector. It’s a role we’ve always played through acquisitions,” he said.

Ariston Thermo, which produces a wide range of products from water heaters to heat pumps and burners, is based in Italy’s central Marche region and employs 7,400 people worldwide.

Thermal comfort solutions for domestic, commercial and industrial spaces are the main source of group revenues, 89% of which are generated outside Italy, mainly in Europe, according to the firm’s website.($1 = 0.8507 euros) (Reporting by Elisa Anzolin; editing by Valentina Za and Elaine Hardcastle)