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Goldman Sachs set price for OVS IPO: up to 1.4 billion

By Angela Gonzalez-Rodriguez

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Business

Analysts at Goldman Sachs believe that the equity value of OVS can be set in a range of between 1.1 and 1.4 billion euro, following a capital increase of 350 million euro.

Goldman Sachs is reportedly getting such an assessment on the basis of the estimates in 2015 and assuming a capital increase of 350 million euro, which should help the refinancing and help bring the debt to 270.1 million euro by the end of the year, compared to the 655 million euros recorded in late 2014.

The bank also believes that OVS can sustain a payout ratio for the dividend up to 50 percent of free cash flow.

As reported by Reuters, “what emerges from a study of private investors, which Reuters has had access to, is that Goldman Sachs is a global coordinator of the IPO, which should lead to the retail chain to land on the stock market in the coming weeks.”

OVS IPO likely to be a public offering and subscription deal

The offer will take the form of OPVS (public offering and subscription): most of the offered shares will come from a capital increase and the remaining from the sale by the existing shareholders.

The latter contrasts with what the company´s CEO hinted last May, when he said that the clothes, accessories and footwear firm will probably only sell new shares, raising money for new shop openings while current shareholders keep their stakes.

The Italian high-street fashion chain said in November that it expected to launch a public offering in the first half of 2015. It is noteworthy that OVS, controlled by Italian retailer Gruppo Coin, initially planned to list the stock between October and November last year.

Lazard is advising on the IPO, while the global coordinators are Italy's Banca IMI, BofA Merrill Lynch, Goldman Sachs International and UniCredit Corporate and Investment Banking.

OVS