On 28-Sep-17, the Italian newspaper ‘Il Sole 24Ore’ has reported the news that Pirelli will tap the market at €6.5 per share, settling at the bottom of the updated price range (€6.5 – €6.7) and implying a market cap of €6.5b. The price set is significant for two reasons: it is at the bottom of the valuation range, after the initial suggestion of pricing between €6.3 and €8.3 per share and implies a new market cap diminished of approximately €1bn compared to the one previous to the delisting.
Having clear in mind this snapshot of the pricing metrics, we believe some further attention is due to the disclosure performed by Pirelli, following the closure of the books. As per the final global offering results the IPO will be implemented according to the following terms:
– Demanded shares: 824,268,217
– IPO price: €6.5ps
– Allotted shares: 400,000,000 of which 350,000,000 from a secondary offering and 50,000,000 from the over-allotment (Greenshoe) option
– Out of all the shares offered, 365,000,000 have been offered to Institutional investors and 35,000,000 have been offered to retail investors
As foreseeable, Institutional demand was 2.1 times the offered shares (including Greenshoe) and foreign interest was significantly stronger than domestic one…