Italy's De Nora seeks IPO valuation of up to $3.45 billion

MILAN (Reuters) -Italy’s Industrie De Nora is counting on cornerstone investors to support its planned Milan stock market listing despite volatile markets, seeking a valuation of up to 3.28 billion euros ($3.45 billion), the electrode maker said on Monday.

FILE PHOTO: De Nora logo is displayed on a smartphone in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration

If successful, De Nora’s flotation will be the first major initial public offering (IPO) in Milan since Russia invaded Ukraine on Feb. 24.

The Italian company, which was founded in 1923, is a leading manufacturer of electrodes for electrochemical devices such as rechargeable batteries and makes systems for water filtration and waste water treatment as well as components to produce green hydrogen.

Numerous European listings have been pulled or postponed in light of volatile markets. Germany’s Thyssenkrupp on Friday said it would not pursue an IPO of its hydrogen division Nucera in current market conditions.

De Nora, meanwhile, on Monday set a price range of between 13.50 and 16.50 euros per share for its IPO, valuing the group at between 2.72 billion and 3.28 billion euros after taking into account the capital increase achieved from the sale of new shares.

The group’s current investors – the De Nora family and Italian gas grid operator Snam – are also selling a portion of their stakes.

The Italian company added that it plans to offer 17.4% of its shares in the sale, which is set to run from June 22 to the end of the month.

SQ Invest, entirely owned by ERG’s controlling shareholder – the Garrone family – will act as cornerstone investor in the offer, De Nora said.

Both SQ Invest and 7-Industries Holding BV, an investor specialising in high-tech industrial companies, will commit to buying shares for up to 100 million euros each, De Nora said.

The company reported 2021 core profit of 127 million euros on revenue of 616 million euros.

($1 = 0.9503 euros)

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