PARIS, June 15 (Reuters) - French car rental group Europcar’s IPO will value the group at 1.7 to 2 billion euros, the company said on Monday.
Europcar IPO-EUROP.PA said in a statement it will price its initial public offering in a range between 11.50 euros and 15 euros per share, hoping to raise at least 854.5 million euros ($957 million).
About 475 million euros of that will come from new shares and about 379.5 million euros from 33 million shares sold by investment fund Eurazeo, which owns 87 percent of Europcar.
“Our target is to have a free-float of about 50 percent,” Europcar chief executive Philippe Germond told reporters on a telephone conference.
Finance director Caroline Parot said she expected the company would have a market capitalisation of 1.7 to 2 billion euros, depending on the IPO price.
Germond said the IPO proceeds will be used mainly to repay the company’s debt. Following these refinancing operations, there will be about 112 million euros left for general corporate purposes, he said.
He added that, of that amount, up to 80 million euros will go towards financial investments, including acquisitions and partnerships as part of the company’s 2015-17 strategy plan.
The offer will close on June 24, the price will be fixed on June 25, and trading will start on June 30, the company said.
The offer also features a greenshoe option to sell more existing shares, up to 15 percent of the original offer size. ($1 = 0.8929 euros) (Reporting by Geert De Clercq; Editing by Kenneth Maxwell and Andrew Callus)