Pirelli valued at $7.7 billion in IPO share pricing
MILAN (AP) — Tire maker Pirelli has priced its initial public offering at 6.50 euros ($7.7) per share, valuing the company at 6.5 billion euros, at the low end of the expected range.
The Milan-based company, which had been taken over two years ago by Chinese owners, is set to resume trading in Milan next Thursday. The public offering is expected to raise about 2.3 billion euros.
Pirelli delisted when state-owned China National Chemical Corp took a 65-percent stake in a 7.7 billion euro deal. But the Chinese owners agreed to reduce their share to below 50 percent to launch the IPO.
Pirelli, the world’s fifth-largest tire maker, makes tires for Formula One racing cars as well as luxury brands like Mercedes, BMW and Audi.