Europastry is embarking on its initial public offering (IPO) in Spain, commencing a bookbuilding process on Friday, which showcases its renewed efforts after previously suspending its listing plans in June due to political uncertainties in France that affected European markets. The renowned Spanish company, known for its frozen bakery products, has set an indicative offering price ranging from 15.85 euros to 18.75 euros per share, as outlined in a notable announcement made on Thursday.
This pricing strategy translates to a total offering size of up to 555.4 million euros, which also includes an overallotment option of as much as 50 million euros, underscoring its significant ambitions in the market. In a strategic move to bolster its position, Europastry has entered into a binding agreement with Criteria Caixa, a prominent Spanish investment holding company that has committed to acquiring 5% of the outstanding shares post-IPO.
This partnership highlights the potential investor confidence in the bakery's trajectory. The final IPO price for Europastry will be definitively established after the completion of the bookbuilding process, which is scheduled to close on October 8. The company aims to generate gross proceeds of 210 million euros from this transaction, which consists of a primary offering that includes up to 13,249,211 newly issued shares, alongside a secondary offering of 15,727,800 existing shares from notable selling shareholders, namely Gallés Office, Exponent, and Indinura.
Proceeds from the IPO are strategically earmarked for debt reduction, alongside pursuing potential mergers and acquisitions to foster inorganic growth and further strengthen the brand’s market presence. Expectations are high as the group anticipates its shares to commence trading on the esteemed stock exchanges of Barcelona, Madrid, Bilbao, and Valencia by October 10, with settlements anticipated to conclude the following day.
Notably, the Gallés family, which founded the bakery in 1987, is set to maintain control as the principal shareholder of Europastry after its significant debut on the stock market. This momentous step highlights the company’s proactive approach in navigating the evolving landscape of public markets and capitalizing on growth opportunities..