PE-backed Talgo to be valued at up to €1.6bn in IPO

The offering comprises 61.6 million shares, equivalent to a 45% stake in the business. It also includes an over-allotment option of 10%.

The IPO comes four years after the business originally mooted a flotation.

The forthcoming listing will result in a partial exit for MCH Iberian Capital Fund III, MCH Inversiones Industriales and Trilantic's Pegaso Transportation International.

Trilantic's 64% stake in the business will be reduced to 35% prior to the exercising of the over-allotment option, with MCH's share descreasing from 16% to 9%.

Trilantic and MCH purchased a 75% stake in the company, which specialises in the production of high-speed trains, for €178m in late 2005. The deal was completed the following year.

Talgo has since undertaken an international expansion strategy, with 82% of its income now accounted for by international activity. The business generated a net turnover of €384m and EBITDA of €69.7m in 2014, up from €327m and €58m the year before.

Banco Santander, JP Morgan and Nomura are acting as joint global coordinators on the placement, while Rothschild is serving as adviser.

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• Topics
• Exits
• Southern Europe
• Industrials
• Spain
• MCH Private Equity
• Trilantic Capital Partners (previously LBMB)