LONDON/DUBLIN Irish paper packaging maker
Smurfit Kappa (SKG.I) said it had sold a further 11.8 million
shares in the company under an overallotment option as part of
its flotation on the Irish Stock Exchange.
Having raised 1.3 billion euros earlier this week in an
initial public offering valuing it at 3.4 billion euros, the
company said in a statement on Friday that the extra shares
meant it had now raised 1.495 billion euros ($1.98 billion).
The firm, one of the world's biggest makers of packaging
made from paper and cardboard, said it had now sold 90.6
million of its 217.4 million shares, bringing Smurfit Kappa's
free float to about 41.7 percent of issued share capital.
Smurfit Kappa was formed in 2005 by the merger of Ireland's
Jefferson Smurfit and Dutch-based Kappa Packaging and floated
this week by its owners -- private equity firms Madison
Dearborn Partners, Cinven [CINV.UL] and CVC [CVC.UL] and
Shares (SKG.L) in the company were down 1 percent at 18.56
euros in London by 0944 GMT but still comfortably above their
IPO pricing of 16.50 euros.
Smurfit has said it would use the proceeds to buy back some
of its high-yield bonds.
It plans to buy back any or all of its 11.5 percent 2015
payment-in-kind notes IE021035572=, of which 392 million
euros are outstanding. It also plans to buy back some of its
$750 million 9.625 percent bonds due 2012 58282PAJ0= and its
350 million euro 10.125 percent notes due 2012 IE016735833=.
Ratings agencies Moody's Investors Service, Standard &
Poor's and Fitch Ratings are considering raising Smurfit
Kappa's ratings as a result of the IPO.
Deutsche Bank is acting as global coordinator of Smurfit's
stock market listing, with Citigroup, Ireland's Davy, Deutsche
Bank and Goldman Sachs acting as joint bookrunners.