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Spain's Aernnova working with STJ Advisors on $1.5 billion IPO: sources

LONDON (Reuters) - Aircraft components maker Aernnova’s planned initial public offering could value the Spanish business at around 1.4 billion euros ($1.5 bln), two sources familiar with the matter said on Thursday.

The company is working with British IPO boutique STJ Advisors on a potential listing next year and will hire investment banks in the coming weeks, the sources said.

Aernnova, which designs and manufacturers aeroplane components including wings and fuselage sections, is 53 percent owned by its management and 47 percent owned by Geneva-based investment firm Springwater Capital. Clients include Airbus AIR.PA, Bombardier BBDb.TO and Boeing BA.N.

STJ declined to comment. Aernnova and Springwater did not immediately respond to requests for comment.

Founded in 1986 and headquartered near Bilbao, Aernnova has core earnings (EBITDA) of around 140 million euros and could fetch 9-10 times that, the sources said, noting that the listing would likely come in the second half of next year, although no deal is certain.

Aernnova, which has said previously that it is seeking a listing, has 4,700 employees and expects revenue of over 650 million euros this year, according to its website.

The initial public offering (IPO) market in Spain is expected to heat up in 2016 after the country’s general elections next month, as investment firms try to make the most of an uptick in the economy.

Private equity-backed companies including Telepizza, retailer Cortefiel and hospital group quirónsalud are all eyeing listings or sales.

($1 = 0.9274 euros)

Reporting By Freya Berry, additional reporting by Emma Pinedo in Madrid; editing by Emiliano Mellino and Susan Fenton

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