Shipbuilder Fincantieri will appear on the Milan stock exchange following little success from an earlier effort to attract investors. (Fincantieri)
ROME — Italian shipbuilder Fincantieri is due to debut on the Milan stock exchange in Italy after an IPO failed to spark the interest expected from institutional investors.
Pressure was on the state-controlled yard to drum up interest as it is the first of a series of listings of Italian state enterprises planned by the reformist government led by Matteo Renzi.
But the firm said it had priced its initial public offering at the bottom of its price range at 0.78 (US $1.10) per share and cut the size of the offering by a third.
The company is offering 450 million shares for a total value of 351 million, down from the maximum of 704 million shares it planned to offer, made up of 600 million from a capital increase and the remainder sold by the state at a price range of between 0.78 and 1 per share.
Over the weekend the firm said the Italian state would no longer sell shares, and all the shares on offer would come from a capital increase. The offer would give Fincantieri an initial market capitalization of 1.32 billion euros, the firm said.
Apart from building warships and cruise vessels at Italian yards, the firm spent US $120 million in 2008 to take over Manitowoc Marine Group, and through it the Marinette Marine yard which builds littoral combat ships for Lockheed Martin.
In a 455 million deal signed in December 2012, Fincantieri took over 10 shipyards building offshore vessels for oil rigs from South Korean shipbuilder STX.
The firm saw an 85 million profit in 2013 with new orders totaling 4.9 billion.
Fincantieri is due to benefit from a multiyear, 5.8 billion Italian Navy program to build new vessels, which launched this year with initial funding in the 2014 defense budget. ■