July 1, 2014 / 7:41 PM / 3 years ago

UPDATE 1-Italy's Rottapharm sets IPO price range at 7.25-9 euros/shr

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MILAN, July 1 (Reuters) - Italian pharmaceuticals company Rottapharm Madaus said on Tuesday it would offer 50 million shares, or 25 percent of its capital, in its initial public offering at a price of 7.25-9 euro per share.

The price range would value the company, controlled by Italy’s Rovati family, at between 1.45-1.8 billion euros ($2-2.46 billion), Rottapharm said in a statement, adding that Italian market regulator Consob had approved the firm’s listing prospectus.

The offer includes the option to sell an additional 10 million shares, it added.

Three sources close to the matter told Reuters in April the group aimed to float a 40 percent stake in an IPO that would value it at up to 2.2 billion euros.

The number of new shares issues has picked up across Europe in recent months, spurred by an improved economic outlook and rising equity markets, thanks in part to ultra-loose monetary policy.

In Tuesday’s statement, Rottapharm said a minimum of 2.5 million shares will be offered to the general public in Italy, while the other 47.5 million shares will be reserved for institutional investors in Italy and abroad. The offer includes a greenshoe option for between 7.5-9 million shares.

The institutional placement will start on Wednesday and the public offer on Thursday. Both will end on July 10.

All shares in the IPO will be sold by Rottapharm’s owner Fidim, which will remain the controlling shareholder with a 75 percent stake after the IPO. Should the additional shares be offered and the greenshoe option exercised, Fidim’s stake would fall to 65.5 percent, Rottapharm added.

Deutsche Bank, Goldman Sachs and J.P. Morgan act as global coordinators in the offering. They also serve as joint bookrunners along with Jefferies, Morgan Stanley and Banca IMI.

Rottapharm, based in the northern Italian city of Monza, started in 1961 with the creation of a small independent research laboratory. Its expansion culminated in 2007 when it acquired German multinational Madaus Pharma. Now it is a global player with a presence in more than 85 countries.

$1 = 0.7331 Euros Reporting by Agnieszka Flak; Editing by Tom Heneghan

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