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Shares in Gestamp, the Spanish car parts maker, will start trading on the Madrid stock exchange on Friday, in the biggest IPO in Europe this year.
The company will be floated at a price of €5.60 per share, giving a market value of €3.2bn. The IPO will go ahead at the lower end of the range set by Gestamp’s bankers, who were targeting a price of between €5.60 and €6.70.
In a note released on Wednesday night, Gestamp said the offering had been “oversubscribed since the early days of the process” with long-term investors holding “significant weight in the order book”.
The Riberas family, which owns the company, is selling 27 per cent of Gestamp in Friday’s IPO, a share that could rise to 31.05 per cent if the over-allotment option is exercised. The family will continue to hold 54.9 per cent to 58.95 per cent. The balance is owned by employees and the Japanese Mitusi group.
“The demand shown over the past two weeks pays testament to Gestamp’s potential and its global leadership position. Following the IPO we will continue to focus on our path of profitable growth with a long-term investment approach,” said Francisco Riberas, the chairman and chief executive of Gestamp.
With a presence in 21 countries and sales of €7.5bn last year, Gestamp supplies car components from bodywork to door hinges to all the main car manufacturers in the world. It has more than 36,000 employees and 12 centres dedicated to research and development.