Metals News
UPDATE 2-Austrian Aluminium Group AMAG Plans 535 Mln Eur IPO
industry news
Mar 25,2011

VIENNA, March 24 (Reuters) - Austrian aluminium group AMAG pressed ahead on Thursday with an initial public offering that it said could raise up to 535 million euros ($752.5 million).

It set a price range of 19 to 24 euros per share for a public offer to institutional and private investors in Austria. A road show for international investors is also planned ahead of a private placement, it said in a statement.

The offer period is set to run until April 6. Trading in Vienna is supposed to start on April 8.

The move comes despite last week's volatility in global stock markets which caused other companies to rethink their listings.

The last big Austrian IPO was that of construction group Strabag SE (STRV.VI: Quote) in October 2007 which raised 1.33 bln euros.

AMAG had said on March 11 it was considering an initial public offering this year to raise money to finance expansion.

An IPO will let main owner CP Group 3 -- a joint venture between One Equity Partners and Constantia Packaging -- reduce its stake and will raise fresh money to expand AMAG's range of products and geographical reach.

CP Group 3 will offer just under 17 million existing bearer shares, while a capital increase of up to 5.3 million new shares is earmarked to finance growth.

"The company aims to have gross proceeds of around 100 million euros from the capital increase," it said.

CP Group 3 has earmarked up to nearly 3.3 million shares for a greenshoe overallotment option.

BNP Paribas (BNPP.PA: Quote) and JPMorgan (JPM.N: Quote) are joint global coordinators and joint bookrunners. Erste Group Bank (ERST.VI: Quote), Raiffeisen Centrobank and UniCredit Bank Austria (CRDI.MI: Quote) are co-lead managers.

If the offer is fully taken up, AMAG's free float will be at least 55 percent excluding the overallotment option. CP Group 3 will keep a stake of up to 30 percent and has agreed to a lock-up period of six months from the first day of trading.

An employee foundation is set to get a stake of around 10 percent, while Raffeisenlandesbank Oberoesterreich AG has said it will take a stake of 5 percent plus one share.

The group generated 2010 earnings before interest, tax, depreciation and amortisation of 139 million euros on sales of 728 million euros. It employs 1,175 staff. ($1=.7109 Euro)

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