September 14, 2017 / 3:04 PM / 12 days ago

Tyremaker Pirelli says to raise up to 3.3 billion euros in IPO

Formula One - F1 - Russian Grand Prix - Sochi, Russia - 29/04/17 - Pirelli tyres on display in paddock area. REUTERS/Maxim Shemetov

MILAN (Reuters) - Italian tyremaker Pirelli unveiled plans on Thursday to raise as much as 3.3 billion euros (£2.97 billion) on its return to Milan’s stock market next month, in a public offer that values the company at less than it had originally hoped for.

Pirelli said in a statement it would issue up to 350 million shares within an indicative price range of 6.30-8.30 euros each, giving it a valuation between 6.3 billion and 8.3 billion euros.

Pirelli’s existing owners, including its controlling shareholder China National Chemical Corporation (ChemChina), had been seeking a valuation of up to 9 billion euros before, sources familiar with the matter said.

Pirelli may also issue another 50 million shares to its bankers under an over-allotment option. If that happens, the total stake sold into the offer would amount to 40 percent.

(This version of the story corrects to make clear Pirelli issued price range in a statement, not prospectus)

Reporting by Francesca Landini; Editing by Mark Bendeich

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