SIG Combibloc priced its initial public offering at 11.25 Swiss francs per share in a deal that raises 1.49 billion Swiss francs (US$1.53 billion) before an overallotment option and values the Swiss packaging maker at around 3.6 billion francs, it said before its market debut on Friday.
As well as new shares being issued to reduce debt, Canadian private equity firm Onex Corp, majority owner of the drinks packaging company since 2015, and SIG management are also selling some of their existing holdings.
The offer price, which Reuters had reported on Thursday, was towards the lower end of the 11 to 12 franc price range the company had flagged this week, narrowed from the original indication of 10.50 to 13.50 francs per share.
SIG nets around 1.14 billion francs from the share sale, which creates a free float of around 41 percent and which could rise to 47 percent should the overallotment option be fully exercised.
The packaging company, based near Schaffhausen on the Swiss-German border, has said it plans to use proceeds to cut debt to about 1.5 billion euros (US$1.75 billion), or 3 to 3.25 times adjusted earnings before interest, taxes and depreciation (EBITDA) of 480 million euros, from about 2.5 billion now.
The flotation is the tenth listing on the Swiss stock exchange this year.
BofA Merrill Lynch, Credit Suisse and Goldman Sachs International are acting as joint global coordinators and joint bookrunners for the IPO.
Barclays, Citigroup, Morgan Stanley and UBS are acting as joint bookrunners, while UniCredit Bank and Vontobel are acting as co-lead managers. Rothschild & Co is acting as independent financial adviser to SIG.
(Reporting by Michael Shields Editing by Maria Sheahan)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)