Italy's De Nora family to hold controlling stake in group after IPO

MILAN (Reuters) -Italy’s De Nora family will keep a controlling stake in their electrode-making company which aims to list next week while gas grid operator Snam will hold a “relevant” share, De Nora Industrie’s Chief Financial Officer Matteo Lodrini said.

FILE PHOTO: De Nora’s logo is displayed on a smartphone in this illustration taken June 13, 2022. REUTERS/Dado Ruvic

De Nora Industrie, founded in 1923, is seeking to raise 200 million euros ($210 million) in fresh cash through its initial public offering (IPO), which could value the company at up to 3.28 billion euros.

The group, which reported an 80% rise in turnover in the first quarter of 2022 from a year earlier, has three business areas. As well as its main electrode business, it also makes systems for water filtration and waste water treatment as well as components to produce green hydrogen.

Snam holds a 36% stake and De Nora brothers Federico and Michele hold a combined share of almost 64%, the IPO prospectus showed. Both shareholders will dilute their ownership with the upcoming IPO. They will keep three voting rights per every share of the company they will own, the IPO prospectus shows.

The Garrone family, which is the controlling shareholder of Italian energy group ERG, will commit to buying shares for up to 100 million euros, De Nora said.

“I can’t rule out that (the Garrone’s) stake will rise,” De Nora Chief Executive Paolo Dellacha told Reuters on the sidelines of a press conference.

Lodrini said the company aims to have a 20% free float.

Credit Suisse and Goldman Sachs International are joint global coordinators and joint bookrunners, BofA Securities, Mediobanca and UniCredit are joint bookrunners.

Latham & Watkins is acting as legal advisor to the company, legal firm Pedersoli is advising the De Nora family and Clifford Chance is advising the joint global coordinators and joint bookrunners.

($1 = 0.9506 euros)

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