September 20, 2019 / 12:41 PM / 5 months ago

Italy's RCF to use IPO proceeds to cut debt and fund M&A - CEO

MILAN, Sept 20 (Reuters) - Italian professional audio equipment maker RCF aims to use the 150 million euros ($166 million) in proceeds from its initial public offering to pay off debt and seize M&A opportunities in the audio equipment industry, the group’s chief said on Friday.

The IPO will mark a comeback to the Milan bourse for RCF, which was delisted in 2013 after its shares lost more than three quarters of their value.

“The first time we went public we were too small and it didn’t go well”, Chief Executive Arturo Vicari told Reuters in a telephone interview. “But we still believe that being listed is useful for growth”.

In the last year, RCF has acquired U.S. firm Eastern Acoustics Works (EAW) and Denmark’s DPA Microphones.

The group is looking at potential acquisition targets in Europe and the United States., Vicari said.

In 2018, RCF posted pro-forma revenues of 183 million euros, including EAW and DPA, with adjusted core earnings of 40 million euros. At the end of June, debt was around 160 million euros.

$1 = 0.9062 euros Reporting by Elisa Anzolin; Editing by Mark Potter

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