A few days ago, Pirelli’s public offering of the company’s return to “Piazza Affari” was launched. Pirelli Ipo will end on September 28 with a possible landing on the stock market on October 4th. Some interesting insights on what might be the outcome of the deal came during the presentation of the deal by Pirelli’s historical man, Marco Tronchetti Provera. Just during the show’s roadshow, Pirelli’s management confirmed that a company share of 35% to 40% will be marketed. Taking into account the price-for-sale fork that has been proposed, Pirelli’s final evaluation should, therefore, be in the range of 6.3 to 8.3 billion euros.
At the end of Ipo, the company’s shareholding will undergo significant transformations, considering that the share of the associate ChemChina will fall to between 45% and 49%. Just concerning the relationship with Chinese shareholders, Tronchetti Provera, during her speech, yesterday, said that ChemChina has always shown “respect for minorities”.
Always the same Provera has also pointed out that today’s Pirelli is a company with a “firmer” financial position and will be able to distribute “dividends equal to 40% of the net result from 2019”. Pirelli reports growth ahead of IPO and for what is regarding debt, the manager has clarified that Pirelli has “reduced the debt to a level where the company is funded at the ‘investment grade’, and has reduced the debt thanks to 600 million earned by the separation of truck operations, 1.2 billion of capital increase and 500 million of cash flows for the last two years.” In light of these results, Pirelli will have “a net debt / EBITDA ratio of less than 3 times and will fall below 2 times by 2020”.
While the Pirelli Ipo is in full swing, analysts have already begun to calculate the multiples they will handle the new title and think Pirelli to overtake AIB with largest European IPO this year. The forecasts were made by the prospectus published last week. According to the Sole 24 Ore projections, the new Pirelli net price-driven profit ratio should be within the range of 21.9 to 28.9 times. The Pirelli title should swap from a minimum of 9.7 times to a maximum of 11.6 times the enterprise-value-adjusted bid ratio. These indications are very important for Pirelli’s Pirelli shares.