Triton's Befesa sets IPO price range

Francesca Veronesi
20 October 2017

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Triton-backed Befesa, an environmental services provider, has announced a €28-38 share price range for its IPO taking place towards the end of October.

The company set the price for its initial offering within the €28-38 range. Up to 14,308,000 ordinary shares of Befesa will be on offer from current owner Triton. This would correspond to an equity value of between €461-625m, assuming the full exercise of the greenshoe option.

This announcement follows the intention to float on the Frankfurt stock exchange released in October 2017. The offer period is expected to begin on 23 October 2017 and to end on 2 November 2017. The first day of trading on the regulated market of the Frankfurt Stock Exchange is planned for 3 November 2017.

The free float is expected to be in excess of 48% of Befesa's outstanding share capital, assuming the placement of all greenshoe shares.

The selling shareholders agreed on a lock-up period of six months for Triton, as well as 12 months for the company's top management.

ABG Citigroup, Goldman Sachs International and JP Morgan are acting as joint global coordinators and joint bookrunners on the IPO. Berenberg, Commerzbank, Santander and Stifel are acting as additional joint bookrunners.

Triton acquired the business from Spanish recycling corporate Abengoa in 2013 for a €1.075bn EV and €850m equity injection. The deal included a vendor note of €48m with a four-year maturity and a deferred consideration valued at €225m, which will be received as a convertible loan and will convert into the economic equivalent of 14.1% of common equity when the GP exits the company.

Founded in 1993 and based in Ratingen, the company provides environmental services to the steel and aluminium industries across Europe and Asia. It mainly focuses on treatments for steel dust and aluminium salt slag recycling, and has plants in Germany, Spain, Sweden, France, the UK, Turkey and South Korea. In the financial year ending in June 2017, the company generated €685m in revenues and €133m in EBIT, with a 19.5% margin.

In 2016 and 2017, the company completed the sale of non-core industrial environmental services units, including its branches in Peru, Chile and Colombia, and chemical cleaning businesses Solarca and Séché Environment.