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UPDATE 1-Montana Aerospace IPO values company at 1.2 bln Swiss francs

05/12/2021 01:45
UPDATE 1-Montana Aerospace IPO values company at 1.2 bln Swiss francs

Adds details, comment from CEO

- Austrian-Swiss aircraft component maker Montana Aerospace AERO.S priced its Swiss initial public offering at 25.65 Swiss francs per share, the company said ahead of its stock market debut on Wednesday, giving it an expected market capitalisation of 1.2 billion Swiss francs ($1.33 billion).

Montana said its issuance of 17.1 million new shares would result in gross proceeds of approximately 440 million francs, which it will use to fund acquisitions and organic growth in the aero industry that has been hard hit by the coronavirus. nL8N2MG0QK

Assuming the full exercise of an over-allotment option that could boost proceeds to a total of 506 million Swiss francs, the company will have a free float of 41.8%. Montana Tech Components, currently the sole owner, will remain the majority shareholder with a stake of 58.2% following the listing on the SIX Swiss Exchange.

The IPO is the second in Switzerland this year following the float last month of contract drugmaker PolyPeptide Group PPGN.S.

Montana Aerospace, which makes components for wings and aircraft bodies, wants to use 60% of the proceeds for acquisitions in the highly fragmented aviation sector which has been battered by the COVID-19 pandemic and the Boeing 737 MAX safety crisis.

The remaining 40% will fund organic growth, important as customers like Airbus and Boeing want to deal with less complicated supply chains in future.

"With the listing on SIX, we return to our Swiss roots and strengthen the financial resources to successfully continue our strategic course," said Chief Executive Markus Nolte.

Berenberg Bank acted as global coordinator and joint bookrunner, while Commerzbank and Zuercher Kantonalbank were joint bookrunners in the IPO.

($1 = 0.9054 Swiss francs)

(Reporting by John Revill, editing by John Miller)

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