Packaging maker Aluflexpack's shares rise after Swiss IPO

Text size Aa Aa

ZURICH (Reuters) – Shares in Aluflexpack <AFPD.S> rose more than 5% in early trading as the packaging maker made its trading debut on the SIX Swiss Exchange on Friday.

The stock touched a high of 22.245 Swiss francs, up from the issue price of 21 set in the initial public offering, before paring gains to trade up 4.8% by 0710 GMT.

The total issuance volume from the offering was pegged at approximately 169 million Swiss francs (136.74 million pounds) by issuing 7.3 million new shares plus a 10 percent over-allotment option.

At a share price of 21 francs, the company had an initial capitalisation of 363.3 million francs, with a 46.4 percent free float if the over-allotment option was fully exercised.

Aluflexpack, with operations located across Europe including Croatia, Turkey and Poland, has said it would use IPO proceeds to expand production capacity in Europe and production automation, make takeovers, and repay shareholder loans.

Just before the IPO, it suffered a setback when a fire at French facilities on June 24 forced it to shift production elsewhere.

(Reporting by John Miller; Editing by Michael Shields)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.