Zignago Vetro is hoping to repeat the stock market success of parent company Zignago Holding when the initial public offering of the glass maker takes place in spring 2007. Zignago Vetro, which makes …
Zignago Vetro is hoping to repeat the stock market success of parent company Zignago Holding when the initial public offering of the glass maker takes place in spring 2007. Zignago Vetro, which makes containers for food and cosmetics, and special glass, posted sales of EUR 209.4 million and profit of EUR 15.4 million. The request for listing has been submitted to the stock market regulator and the Milan exchange, and save any last minute obstacles, the share should go onto the Star list in spring 2007 according to Franco Grisan, president and managing director of Zignago Vetro. In an interview with Mercati Finanziari, Mr. Grisan said the initial offer would be entirely public with a floating fund of 35%, the minimum level required for the Star list. The majority of the shares are destined for institutional investors although there would be a tranche reserved for retail. When asked why the company had opted for a listing instead of a capital increase as a means of raising liquidity, Mr. Grisan said Zignago Vetro had decided on the flotation in order to have easier access to capital markets in view of future development operations. He did not rule out the possibility of development through acquisitions. Mr. Grisan said the reference shares for Zignago Vetro were Swiss Vetro Pack and Spain“s Vidrala, amongst others. He added that the performance of the glass sector had improved slightly at the end of 2006 and he was hoping for a positive 2007 across all three sectors of cosmetics, food and special glass.