MILAN, Italy (June 16) — Pirelli & C. S.p.A. will begin selling shares in its new Pirelli Tyre S.p.A. subsidiary to the public starting June 21 on the Borsa Italiana and to institutional investors worldwide.
The initial public offering will comprise at least 22.5 million shares, or 25 percent of the maximum 90 million shares, which in turn represents 35 percent of the company´s total share capital. Institutional investors will have access to a maximum of 75 percent of the initial 90 million shares on offer in Italy and internationally.
Pirelli said sales on the Borsa Italiana will begin at 9 a.m. Central European Daylight Savings Time on June 21 and continue until 4:30 p.m. on June 30.
Pirelli has said the indicative price on the new shares is 7.4 euros to 9 euros ($9.32 to $11.34) per share, which values the company at around $2.5 billion and should generate between $840 million and $1 billion in cash for the company.
The Italian-language Prospectus will be available to the public in the investor relations section of Pirelli´s Web site — www.pirelli.com — and at Pirelli Tyre´s legal headquarters and Borsa Italiana S.p.A., as well as through the intermediaries handling the placement.
Pirelli Tyre S.p.A. reported sales last year of $4.5 billion, with 24,000 employees at 24 factories in 12 countries and commercial activities in more than 160 countries, Pirelli said.