An Acuris Company
This week Dealspeak, with Mergermarket/Dealreporter ECM, focuses on trends surrounding the landmark Pirelli listing Dealspeak 29 September 2017
European sector variation by number of IPOs YTD
+17 +6 +13 +3 +5 +24
Pharma, Industrials & Technology Real Estate Energy, Mining Med. and Chemicals Other Biotech & Utilities
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Upcoming automotive/luxury IPOs
Details
Company Expected Listing Stock Exchange Estimated Implied Peer Group Key Financials Underwriters Major Shareholders Date Equity Value* Jaguar Land TBC TBC GBP 10bn - GBP BMW (main), Ferrari, 2017 Revenue: over GBP 20bn. TTM EBITDA to TBC Tata Motors Rover 14bn Daimler 31-Dec-15: GBP 3.87bn, Net debt: GBP 104m (Int)
Volvo Cars Q4 2017 NASDAQ EUR 5.6bn BMW 9m 2016 Revenue: EUR 12.9bn, EBIT: EUR 732m; Potentially Zhejiang Geely Holding, AMF, First Stockholm or/ Equity: EUR 4.3bn. 2015 Revenue: EUR 17.6bn (Int) Nordea Swedish National Pension Fund,
Magneti End of 2017 TBC EUR 4bn - EUR Annual Revenue: EUR 7.9bn; EBITDA margin of 5% TBC Fiat Chrysler Automobiles Marelli 5bn (Int)
Valentino Delayed to H1 2018. Italian Stock EV of EUR 3.2bn Prada, Hermes and 2016 Revenue: EUR 1.11bn, EBITDA: EUR 206m. TBC Mayhoola For Investments IPO or potential sale Exchange (based on EBITDA Salvatore Ferragamo 2015 Revenue: EUR 986m, EBITDA: EUR 183m (Int) to strategic investor. of EUR 206m). (main), LVMH
Aston Martin 2018. IPO or London Stock GBP 1.95bn Ferrari (main), LVMH, TTM Revenue as of H1-17: GBP 791m; EBITDA: GBP TBC Investindustrial (37%), Investment Dar, Lagonda potential sale to Exchange Kering, BMW 174.6m; Net debt: GBP 419m (FS) Adeem Investment, Daimler (5%) strategic investor Groupe SMCP End of 2017 Euronext Paris EUR 1.23bn - EUR Moncler (main), Burberry, 1H-17 Revenue: EUR 439m, EBITDA: EUR 73m. 2016 BNP Paribas, Shandong Ruyi Technology Group 1.47bn Inditex EBITDA: EUR 130m, Net debt: EUR 533m (FS) Societe (81%)
Versace 2018 Italian Stock EV of EUR 1.1bn Burberry, Moncler, LVMH, Exp. annual revenue by 2017: EUR 800m. 2015 Goldman Sachs Versace family (80%), Blackstone Exchange Harley Davidson Revenue: EUR 645m, EBITDA: EUR 81m (Int) Group (20%)
Furla TBC Italian Stock EUR 600m 2016 Revenue: EUR 422m, EBITDA: EUR 60m. Potentially Giuseppe Costato through holding Exchange 2015 Revenue: EUR 339m, EBITDA: EUR 44m (FS) Goldman Sachs company Bloom (51%), Tamburi Investment Partners
* based on Dealreporter analytics’ proprietary peer group analysis
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Katrien Van Hoof, Transatlantic Deals ECM Senior Reporter, 2012—2016 Mergermarket/Dealreporter
Pirelli: Mutiple Comparable Analysis This graph shows where the 11.5x EV/EBITDA multiple. companies in Pirelli’s wider But Nokian boasts a niche peer universe trade in terms winter tyre segment and has of EV/EBITDA. substantial Russia exposure, 25 limiting direct read-across Initially, Pirelli looked to Pirelli. to position itself closer towards luxury peers, as Pirelli’s 8.3x EV/EBITDA Ferrari did during its 2015 IPO pricing puts Pirelli
20 float. These peers proved consequently sat between too aspirational, with the the commodity tyre buyside pushing back on manufacturers and premium the idea. autoparts brands such as Nokian and fellow Italian Regular tyre manufacturers, player Freni Brembo. 15 such Continental and Michelin, are Pirelli’s closest As early as July, comparables alongside Mergermarket ECM premium dealer Nokian. reported Pirelli could pique 21.5 interest at c.8x EBITDA.
EV/EBITDA Multiple EV/EBITDA 10 The latter is best-in-class among tyre players, with an
11.5 Further information 5 10.5 Get in touch 8.3 6.8 5.6 Katrien Van Hoof
0 Michelin Continental Pirelli Freni Brembo Nokian Ferrari
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€2.6bn 15 77% Number of listings in Italy Pirelli listing as a percentage this year, worth $3.4bn of total money raised on Italian Money expected to be raised by Pirelli stock exchange this year (incl. over-allotment) - the second largest IPO on Borsa Italiana on Mergermarket record (since 2001)
“Both the automotive and luxury sectors are booming this year, with stocks soaring €3.5bn 12.5% and deal activity intensifying”
Post-listing average Katrien Van Hoof, Mergermarket Money raised through performance on European automotive and luxury listings exchanges in the automotive in 2017 (includes Pirelli) and luxury sector - compared to 9.3% across all sectors
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IPO Criteria Contacts
Based on announced corporate listings, Production Commercial Deal Submissions ECM Senior Reporter, Merger- Americas Americas market/Dealreporter excluding listing of funds, investment trusts, Kurt Viehl Jason Loria Katrien Van Hoof [email protected] [email protected] Special Purpose Acquisition Vehicles and [email protected] +1 212 390 7812 +1 646 378 3122 +44 20 3741 1242 follow-on offerings, but including junior Asia Asia ECM Editor, Mergermarket/ markets for LSE and Borsa Italiana. Dealreporter Ajay Narang John Capulong [email protected] [email protected] John West +852 2158 9764 +852 2158 9723 Based on companies listing on [email protected] +44 20 3741 1207 EMEA EMEA European stock exchanges Head of Global PE and IPO Ben Rumble Andrea Putaturo London Stock Exchange and Borsa Italiana Content [email protected] [email protected] +44 20 3741 1007 +44 20 3741 1274 Silvia Paparello include both listings on Main market and AIM [email protected] Period: based on announcement +44 20 3741 1291 Press Relations Head Analyst, Dealreporter Americas day of final offer price. Europe Chrissy Carney Data run from 01-Jan-2008 to 28-Sep-2017 Olga Stahl [email protected] [email protected] +1 646 378 3118 +44 20 3741 1229 Asia Research Editor, EMEA Su-Chin Zhang Jonathan Klonowski [email protected] [email protected] +852 2158 9706 +44 20 3741 1293 EMEA
Olivia Cummins [email protected] +44 20 3741 1129
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