Unsatisfactory pricing is the reason behind the withdrawal of the IPO of Ferretti. The Group in a note has expressed its favour for a private placement in spring, announcing that they are already negotiating the entrance of a new European investor. As reported by Italian financial newspaper Il Sole 24 Ore, Ferretti’s IPO scheduled for listing from next Monday, October 21, has been called off, despite the book was completed thanks to the final subscription of a 50 million euro tick by Bank of China.
The lowering of the placement price at 2 euros per share, suggested by the banks, was due to an over estimation of the company which the market saw in the Offer. This unsatisfactory pricing did not convince the majority shareholder Weichai Group which at the end decided not to to challenge the stock exchange market in a moment that does not seem to value the company, as much as the two shareholders expected. However, the investment plans announced with the listing project are confirmed.
In a note Ferretti underlines “to have taken the decision to stop the Offer despite the appreciation shown by investors, especially from Italy and Asia, which supported and believed in the company”. This is because “the deterioration of the conditions of the financial markets does not allow to properly valorize the company”.
Ferretti received the support from Generali, Mediolanum, Fideuram and Kairos.
Ferretti Group “will continue to pursue its development and growth objectives considering the excellent capital, liquidity and commercial success conditions that are such as to enable the company to carry on its industrial plan already fully financed by the shareholders and from the credit system to which the company has a zero debt position”. The group has “zero debt” and therefore it can re-present itself on the market “with the rules papers to make a successful IPO”. Galassi explains that “the goal was not to make an IPO, but a beautiful one”. Weichai Group and Ferretti Group’s president Tan Xuguang writes in a note: “We will identify the right moment and will continue to optimize the allocation of resources from the financial market and identify the right time for listing when the situation on the financial markets has stabilized”.
“The book has been closed and allocated – explained Alberto Galassi – but at low prices, because of the markets are nobody’s friends, neither in Italy nor in other countries”. The listing project “will resume after we have shown the markets how much we are worth together with a new partner”.
As stated by Alberto Galassi in an interview to Reuters, Ferretti is negotiating the entrance of an European investor in the share capital with a stake equal to 30%. This operation could be closed next year.