Spain's Europastry launches IPO, valuing company at $1.75 billon

MADRID (Reuters) -Spanish stock market regulator CNMV has approved Barcelona-based frozen bakery producer Europastry's prospectus for its upcoming initial public offering - its fourth attempt at a listing on the Madrid stock exchange - the company said on Thursday.

It said it was aiming to raise approximately 210 million euros ($234 million) in gross proceeds by offering between 26.93 million and 28.98 million ordinary shares.

The price range was set at between 15.85 euros and 18.75 euros per share, which were expected to be listed "on or about" Oct. 10. The offering values the whole company at 1.57 billion euros.

Spanish holding company Criteria, the investment arm of the La Caixa foundation, has subscribed to take a 4.9% stake in the company through the offering, according to the prospectus.

Founder Jordi Galles is set to retain a controlling stake of 62.2% of total shares.

Europastry had previously attempted to launch IPOs in 2007 and 2019 without success and last June it was forced to suspend a planned float of at least 25% of its shares on the Spanish bourse after political instability in France rocked European equity markets.

Founded in 1987, Europastry is controlled by the Galles family. The company operates in the frozen bakery dough sector in more than 80 countries and runs 27 plants in America and Europe.

It reported a net turnover of more than 1.3 billion euros in 2023 and adjusted earnings before interest, taxes, depreciation and amortisation of 47 million euros for the first quarter of 2024.

($1 = 0.8969 euros)

(Reporting by David Latona and Corina Pons; Editing by Inti Landauro and Andrei Khalip)