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Tyremaker Pirelli says to raise up to 3.3 billion euros in IPO

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Tyremaker Pirelli says to raise up to 3.3 billion euros in IPO

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MILAN (Reuters) – Italian tyremaker Pirelli unveiled plans on Thursday to raise as much as 3.3 billion euros (£2.97 billion) on its return to Milan’s stock market next month, in a public offer that values the company at less than it had originally hoped for. Pirelli said in its listing prospectus that it would issue up to 350 million shares within an indicative price range of 6.30-8.30 euros each, giving it a valuation of between 6.3 billion and 8.3 billion euros. Pirelli’s existing owners, including its controlling shareholder China National Chemical Corporation (ChemChina), had been seeking a valuation of up to 9 billion euros before, sources familiar with the matter said. Pirelli may also issue another 50 million shares to its bankers under an over-allotment option. If that happens, the total stake sold into the offer would amount to 40 percent.

(Reporting by Francesca Landini; Editing by Mark Bendeich)
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