FRANKFURT (Reuters) – German used car trading platform AUTO1 is expected to price its 1.8 billion euro initial public offering (IPO) at the top of the 32 to 38 euros per share range, the bookrunners organising the deal said on Monday.
AUTO1 plans to raise 1 billion euros by selling new shares, the bulk of which it wants to invest into its Autohero brand in a push to become Europe’s leading fully digital car retailer, with the remainder of the proceeds earmarked to repay a convertible bond.
Existing shareholders, including Japanese tech investor SoftBank’s Vision Fund, which holds a 20% stake, will sell a further 15.625 million shares with an additional 7 million shares offered as part of an over-allotment option to cover high demand.
After taking into account the offering of new shares, the flotation is expected to value AUTO1 at about 8 billion euros.
The deal is expected to price on Tuesday, while AUTO1’s first day of trading on the Frankfurt Stock Exchange is scheduled for Feb. 4.
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