Fincantieri eyes $833m

A long anticipated initial public offering (IPO) for Fincantieri inched closer today as shareholders voted to go ahead with the plan.

The state-backed shipbuilder will now seek to raise EUR 600m ($833m) from share sales, a statement said.

Its stock is expected to be floated on the Mercato Telematico Azionario market, which is overseen by Borsa Italiana, the company says.

As TradeWinds reported last week, a sale of up to 50% of the company was pending approval in an effort which would see the company listed by mid-June.

A pool of banks, including Banca Imi, Unicredit, Credit Suisse, Morgan Stanley and JP Morgan, are already working on a prospectus.

Taking the shipbuilder public has been a Holy Grail of Italian governments for the best part of a decade, starting with the Romano Prodi administration in 2006.

In recent years, Fincantieri’s global expansion has increased its financial needs, notably the company’s EUR 450m takeover in January 2013 of Singapore-listed, Norwegian offshore vessel builder Vard, formerly known as STX OSV.

Fincantieri is virtually wholly owned (99.3%) by Cassa Depositi e Prestiti (CDP), the Italian state-owned financier that controls parent company Fintecna.