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UPDATE 1-Spanish car parts maker Gestamp slips on market debut
April 7, 2017 / 12:32 PM / 4 months ago

UPDATE 1-Spanish car parts maker Gestamp slips on market debut

2 Min Read

(Adds details, interview, background)

By Andrés González and Dasha Afanasieva

MADRID, April 7 (Reuters) - Shares in Spanish car parts maker Gestamp fell on Friday in one of Europe's biggest stock market flotations of the year.

Gestamp's share sale, which closed on Wednesday, valued it at about 3.2 billion euros ($3.40 billion).

The shares were down 2.6 percent at 5.45 euros ($5.83) at 1225 GMT in their debut on Friday.

Gestamp's owners, the Riberas family, planned to list up to 32.5 percent of the company.

Three of Europe's biggest listings this year have taken place in Madrid as companies take advantage of buoyant markets.

Security firm Prosegur Cash and home builder Neinor both listed in March.

Spain's blue-chip Ibex index is up 20 percent over the past six months.

Formed in 1997, Gestamp supplies parts for more than 800 models for manufacturers such as Volkswagen and Renault. It has 98 plants in 21 countries.

The company makes more than half of its revenue outside of Europe and has plenty of scope to grow in foreign markets, Chief Executive Francisco Riberas told Reuters.

Core earnings before interest, tax, depreciation and amortisation (EBITDA) rose almost 11 percent to 841 million euros in 2016.

The car industry has been a bright spot in Spain's manufacturing sector over the past few years, with companies including Ford and Volkswagen's Spanish brand Seat increasing production, mostly for export.

The Riberas family will raise gross proceeds of around 1.1 billion euros if an over-allotment option is exercised, Gestamp's prospectus showed.

JP Morgan, Morgan Stanley and UBS were the joint global coordinators and bookrunners on the deal. Santander, Deutsche, Societe Generale were also bookrunners. The financial advisor was Lazard.

$1 = 0.9403 euros Writing by Angus Berwick; editing by Isla Binnie and Jason Neely

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