(Adds details and background)
By Rodrigo De Miguel
MADRID, Oct 13 (Reuters) - Spanish car parts maker Gestamp, which supplies components to manufacturers from Volkswagen to Renault, said it is considering listing at least a quarter of the company on the stock market next year.
Family-owned Gestamp is worth around 3.3 billion euros ($3.7 billion), based on the sale last month of a 12.5 percent stake to Japan’s Mitsui for 416 million euros.
The Riberas family plans to place between 25 percent and 37 percent of the group with institutional investors depending on market conditions, Expansion newspaper reported on Thursday, quoting Chairman Francisco Riberas.
A spokesman for Gestamp, which employs more than 30,000 staff worldwide, confirmed the report but said no further details were available as the IPO plan was at an early stage.
“We’re working to get the listing off the ground as soon as possible, but an exact date has not been decided,” he said.
Adviser banks had still not been decided on, a company source who declined to be named said. The company did not give details on how it would use the funds.
Europe’s IPO market is currently weak as volatility in financial markets has prompted a number of companies to put initial public offerings on hold. They include Spanish telecoms giant Telefonica which pulled its plan to float its infrastructure unit Telxius last month due to insufficient investor appetite.
In the past few days three other European companies cancelled IPO plans due to unfavourable conditions, joining a growing number of firms to cancel listings this year amid disappointing debuts for many that did brave choppy markets.
Spain’s car industry has been a bright spot in the country’s manufacturing sector over the past few years, with companies including Ford and Volkswagen’s Spanish brand Seat increasing production in Spain, mostly for export.
The country has a strong industrial base of car parts’ makers which form clusters around assembly plants to supply components.
Gestamp was formed in 1997 from the integration of several small companies that stamped automobile parts out of sheet metal. It aggressively expanded abroad through acquisitions of other companies and construction of new plants and is present in 20 countries from the United States to China with 95 manufacturing plants and 12 research and development centres.
Its turnover more than tripled in seven years to 7 billion euros last year. Its products include metal parts for vehicle bodies and chassis and mechanisms like door hinges and driver controls. ($1 = 0.8928 euros) (Writing by Sonya Dowsett; Editing by Susan Fenton)