Poste Italiane Initial Stock Sale Raises About $3.5 Billionby and
Postal company's stock sale is Italy's biggest IPO since 1999
Italy government led by Matteo Renzi plans more privatizations
Italy raised about 3.1 billion euros ($3.5 billion) in the initial public offering of postal company Poste Italiane SpA, the country’s biggest IPO since 1999, as it seeks funds to cut debt.
The Italian Treasury fixed the final price at 6.75 euros per share, Finance Minister Pier Carlo Padoan told reporters in Rome on Friday, after offering the stock for 6 euros to 7.5 euros. Demand was more than three times the shares that were on sale and the stock will probably start trading in Milan on Oct. 27.
The Poste Italiane IPO, which values the company at about 8.8 billion euros, kicks off a round of state sales that will include air traffic controller Enav SpA and railway company Ferrovie dello Stato SpA, both planned for next year. Prime Minister Matteo Renzi plans to use the money raised to help reduce Italy’s 2.3 trillion-euro public debt, the second-largest in the euro region.
“It’s a clear sign of trust toward the strategic plan of the group as well as the new growth path of the country,” Padoan said.
The government will raise as much as 3.4 billion euros from the Poste IPO if a so-called greenshoe option is exercised.