MILAN (Reuters) - Italian food group Newlat on Tuesday set a price range for its Milan initial public offering (IPO) at 5.80-7.30 euros per share, valuing the company at up to 197 million euros ($216.4 million) before the capital increase.
The offer, reserved to institutional investors, will consist of 17 million of new shares, corresponding to a free float of 41% of capital after the full exercise of the greenshoe option, Newlat said in a statement.
Newlat, which owns a range of food businesses that include dairy brand Polenghi Lombardo and pasta label Delverde, said the IPO’s proceeds would be used for mergers and acquisitions. The company has already identified some potential targets in Europe, in the pasta and bakery products sector and in the dairy industry.
Newlat, based in Italy’s northern town of Reggio Emilia, expects that the institutional offering will be completed by the end of October.
Equita SIM SpA, HSBC and Société Générale are joint global coordinators.
Reporting by Elisa Anzolin; editing by James Mackenzie and Louise Heavens