MILAN, Feb. 23 (Class Editori) — Ferretti Group's listing project continues to take shape. According to rumours collected by MF - Milano Finanza, the yachts Group — that is working on the Hong Kong stock exchange listing project — could land on the list even between the second and third quarters of the year, through an IPO with which the company led by CEO Alberto Galassi would aim to raise about 471 million dollars, which will be used to develop new models and work on suppliers.
For now, however, the conditional is necessary, even in light of the still vivid memory of the last-minute decision of having to withdraw the listing on the Milan Stock Exchange in 2019, precisely because of valuations considered too low by Galassi. In fact, it should be recalled that the listing of Ferretti Group in Milan was cancelled at the last minute because advisors and investors asked the placement to occur at a much lower price than the range initially proposed and between 2.5 and 3.7 euros per share, or equal to an equity value pre-capital increase between 627 and 928 million euros, which would correspond to a capitalization post-capital increase between 727 million and 1.076 billion euros.
However, the placement price had been lowered within a range between 2 and 2.5 euros per share, in order to meet market demands, and Galassi deemed this level too unrewarding. During spring 2019 there were pre-money valuations for Ferretti Group around 750 million euros based on a multiple equal to 14 times the 2018 EBITDA (which was just under 53 million euros against 609 million euros in revenues).
At the end of last year there were already some rumours about the listing (the prospectus was then filed on December 24), when Bloomberg had remarked the intention of the majority shareholder Weichai Power (86%) to start the process, even if the agency mentioned an IPO more around 100 million dollars. It is clear, however, that one of the important aspects will be to understand how the luxury yacht manufacturer will reach a market like Hong Kong, which is well accustomed to luxury, thanks also to the Italian Prada.
The ambitions to have a higher valuation than that aspired in 2019 may be grounded, also considering an order book that at the end of last September reached 984 million euros (at mid-year it was 493 million euros), against revenues that reached 669 million euros, an EBITDA of 83.3 million euros and a profit of 34 million euros. In 2019, Ferretti Group had closed the year with 649.3 million euros in consolidated revenues and an adjusted EBITDA of 62.2 million euros.
Last December, Galassi announced the building of a shipyard in Taranto on a 220,000 square meters area, of which 65,500 square meters are indoor.
(Source:Class Editori)
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