Williams Grand Prix sets price for share offer

Williams founder Frank Williams (front) poses with non-executive Director Toto Wolff (L-R), co-founder Patrick Head and Chairman Adam Parr beside a Formula One car in London February 9, 2011. Williams Grand Prix Holdings PLC will launch an Initial Public Offering (IPO) on the Frankfurt Stock Exchange with the first day of trading expected on March 2.

FRANKFURT/LONDON (Reuters) - Formula One racing team operator Williams Grand Prix Holdings has set the price range for its initial public share offer in Frankfurt next month at 24 to 29 euros, to raise up to 78 million euros (£66 million).

The final price is due to be published around February 28, and the first day of trading should be March 2.

The chairman of the British-based former world champion operator, which last won a race in 2004, also told investors what to expect by way of dividends.

"We have a dividend policy that will be to pay out 25 to 35 percent of our cash flow as and when we can," Adam Parr told reporters at a conference in London on Wednesday.

The offer will consist of up to 2.7 million existing shares. Parr said there were no plans to issue any new shares in the future.

"(The) public company status and standards (will be) viewed positively by sponsorship partners," Williams said in a statement on Wednesday, adding that the IPO would also provide the group with a more sustainable ownership structure that will support its growth.

Sir Frank Williams, who founded the team with Patrick Head in 1977, will remain the majority shareholder. Head told Reuters on Tuesday that he would sell the bulk of his stake.

Swiss-based Bank am Bellevue will act as sole global co-ordinator and sole global bookrunner for the offer. Baader Bank will be joint lead manager and local bookrunner for Germany.

Austria's GBR Financial Services and online brokers DAB (Germany) and Brokerjet (Austria) will be selling agents.

Williams would be the third Frankfurt IPO this year after German bicycle maker Derby Cycle and software group RIB celebrated their market debuts earlier this month.

(Writing by Rosalba O'Brien; Editing by Greg Mahlich and Will Waterman)