Italian food group Newlat has received sufficient orders to sell all the shares in its initial public offering in the planned price range, two sources with knowledge of the matter said on Monday, bucking recent weak demand for Italian listings.
Luxury yacht maker Ferretti and high-end audio equipment group RCF pulled their share sales last week due to poor investor demand but Newlat is pressing ahead and plans to debut on the Milan bourse later this week.
Italian and international asset managers have placed relevant orders for Newlat shares, one of the sources said, adding the final price for the IPO would likely be below the mid-point of the €5.80 - €7.30 euro-per-share range.
The group is based in the northern town of Reggio Emilia and owns a portfolio of more than 20 food brands including pasta label Delverde and dairy brand Polenghi Lombardo.
Fresh Funds
It is offering 17 million new shares, corresponding to around 41% of the company's capital following the offer, to raise fresh funds for acquisitions and to improve its existing plants.
Newlat said previously that the indicative valuation range corresponded to a valuation before the capital increase of between 157 million and 197 million euros ($220 million).
The share sale is due to close on Tuesday afternoon and the company plans to debut on the Milan bourse on 24 October.
Equita SIM, HSBC and Societè Generale are global coordinators for the share sale.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
