The Comisión Nacional del Mercado de Valores (“CNMV”) today approved the prospectus for the Initial Public Offering (“Offering”) of Gestamp’s shares. The majority shareholder, the Riberas family through their holding company Acek, will sell shares representing 27.00% of the Company (155,388,877 shares), which could increase to a maximum of 31.05% (178,697,208 shares), if the over-allotment option of up to 15% of the initial offer is exercised.
Following the Offering, the Riberas family will continue to be the majority shareholder of Gestamp, holding a 58.95% of its share capital (54.9% if the over-allotment option is exercised), while Mitsui and certain Company employees will retain their current stakes of 12.525% and 1.52% respectively, all of whom are under lock-up agreements during the 180 days that follow the closing of the Offering (360 days for employees).
The Offering is exclusively addressed to institutional investor, with the shares expected to be listed on the Madrid, Barcelona, Valencia and Bilbao Stock Exchanges on the 7th of April 2017 under the ticker GEST.
The indicative and non-binding price range guidance has been set between 5.60 and 6.70 euros per share and the Offering final price is expected to be determined on or about the 5th of April 2017 following the completion of a book-building process which will start on the 24th of March 2017 and end on the 5th of April 2017 (inclusive).
With regard to future dividends, Gestamp expects to keep its remuneration policy of approximately 30% distribution of its net profit, starting in 2018 and based on its 2017 results.
J.P. Morgan Securities plc, Morgan Stanley & Co. International plc and UBS Limited are acting as Joint Global Coordinators and joint bookrunners on the IPO together with Banco Santander, S.A., Deutsche Bank AG, London Branch and Société Générale acting as additional Joint Bookrunners and Banco Bilbao Vizcaya Argentaria, S.A., BNP PARIBAS and CaixaBank, S.A. acting as Co-lead managers. Lazard Asesores Financieros, S.A. is acting as financial advisor to the Company and the selling shareholders in the context of the Offering.
Solid financial results
Gestamp, which reported its results for 2016 on the 10th of March, will debut on the market with strong financials.
The company recorded revenues of €7.55 billion in 2016, a 7.3% increase over the previous year, which is above the average growth experienced by the sector in the same period. In addition, it recorded double-digit growth in both EBITDA (+10.6% year-on-year to €841 million) and EBIT (+15.6% to €463 million), with an increase in its net profit of 37.1% to €221 million during 2016.
The results have demonstrated a solid financial position with €1.63 billion in net debt at the end of 2016, representing a leverage ratio (net debt/EBITDA) of 1.94x, below the 1.96x registered in 2015 and in line with Company’s goal.
Gestamp has good visibility into future business, given that more than 90% of its expected revenue between 31 December 2016 and 31 December 2019 will be generated by orders in its current order book.
