Aviation Industry Corp. of China, the state-owned planemaker, plans to sell shares in FACC AG to the public as the Austrian unit raises money to expand and innovate in composite aircraft components.
AVIC plans to sell existing shares in the manufacturer and offer 150 million euros ($206 million) in new shares, Ried, Austria-based FACC said in a statement today. JPMorgan and Morgan Stanley (MS) are joint global coordinators and bookrunners for the initial public offering, planned for this year on the Vienna Stock Exchange.
“The IPO is an important step in strengthening our business proposition and comes at a time when our company is poised to successfully grow into an independent future,” FACC Chief Executive Officer Walter Stephan said in the statement.
FACC, an offshoot of Austrian skimaker Fischer, was acquired by AVIC via its Xi’an Aircraft Industry Group division in 2009. A purchase price wasn’t disclosed. FACC has about 3,000 workers and makes parts such as aircraft flaps for customers including Airbus Group NV (AIR), Boeing Co. (BA) and Bombardier Inc. (BBD/B) It sold a 90 million-euro bond last year that matures in June 2020.
Earnings before interest and taxes rose 19 percent to 42.5 million euros on sales of 546.5 million euros in the fiscal year through February, FACC said in a separate statement. While the company predicts slower sales and earnings growth this year due to program delays, it expects a return to double-digit revenue growth in the two following years.
FACC plans to use the proceeds from the capital increase to fund future growth, focus on innovation for new aircraft programs and pursue acquisition opportunities, it said. Bloomberg News reported the plans for an IPO on May 8, citing people with knowledge of the plans.
A listing in Austria would end a three-year hiatus at the Vienna bourse, marking the first IPO there since aluminum maker AMAG Austria Metall AG’s 367 million-euro share sale in April 2011, and only the second since builder Strabag SE’s 1.3 billion-euro deal in October 2007.
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