Italian food group Newlat has completed its initial public offering, which was fully subscribed but priced at the low end of its indicative price range.
The company sold all of the 12.7m shares on offer to institutional investors at EUR5.80 each, while a so-called greenshoe option of additional shares received orders for 1.27m, compared to the allocated 1.85m shares, according to a filing with the Borsa Italiana stock exchange in Milan.
Earlier this week, Newlat cut the IPO size to 12.7m from 17m, with some media reports suggesting the move was down to market volatility that has caused subdued demand for new share offerings. Reuters reported yacht maker Ferretti and professional audio equipment maker RCF had cancelled their IPOs, “underlining the choppy conditions of the Italian markets”.
Newlat had set its IPO price range at EUR5.80 to EUR7.30. The shares are due to start trading on the STAR segment of Borsa Italiana’s Mercato Telematico Azionario platform on 29 October.
In September, the dairy, bakery and pasta business owned by the Mastrolia family said it expected to raise EUR200m (US$222.2m) from the share offer and use the funds to support its organic growth, improve efficiencies, make acquisitions and expand its geographical footprint.
Newlat owns the dairy brands Polenghi and Giglio cheese, and pasta label Delverde, among others.