- Angela Gonzalez-Rodriguez |
Italian fashion brand OVS has started the public offering and subscription of shares as of February, 16-24. After the IPO, the company will be floating on March, 2 at the Milan Stock Exchange.
The transaction will see 101 million shares on offer or 44.5 percent of the company’s total capital. This shares disposition covers 14 million of securities, offered for sale by OVS parent group - Coin Group -, in addition to 87 million ordinary shares offered for subscription by OVS SpA.
The proceeds from the offering for subscription (over 530 million euro, net of commissions paid to the consortium offered to the public and to the consortium for the institutional placement), may be used to strengthen the balance sheet and accelerate the growth strategy, advanced the fashion firm’s management.
OVS said it is aiming for a market capitalisation of just over 1.2 billion euros in its stock market listing. Hence, OVS will float a little less than half of its capital through the sale of a maximum of 101 million shares, including about 90 percent to institutional investors and the remaining for retail investors, as reported ‘Gazetta del Sud’.
OVS to return to profit in 2015
During a presentation of the IPO, Chief Executive Officer Stefano Beraldo said that OVS returned to profit in 2014 - which will be proven when the books are closed for the fiscal year. "We will return to profit before this IPO, and 2015 will be even stronger financially," said Beraldo earlier this week.
Share price will range between 4 euros and 5.4 euros with the retailer aiming to raise as much as 470 million euros to be used to reduce debt. In this vein, Beraldo said that OVS aims to improve its market share in Italy in order to boost profits in 2015. Likewise, the company is also considering acquisitions to increase growth.
As announced Friday the price range is from 4.00 to 5.40 euro per share, which leads to an enhancement of the economic capital of the company between 560 and 756 million euro, highlighted Reuters.
According to the company’s books, as of January, 31, 2014, consolidated sales amounted to 1.14 billion euro, while in the first nine months of the new fiscal year, ended October, 31, revenues came in at 877 million, up 7.4 percent compared to the same period last year.