European Aerospace, Defence and Space company EADS said on Sunday its initial public offering (IPO) was priced at 19 euros, below initial expectations that were trimmed to lure price-sensitive institutional investors.
That price tag values the newly-created EADS, the world’s third largest civilian and defence aerospace company, at 15.4 billion euros ($14.6 billion), according to an EADS spokeswoman. With 166.5 million shares in the offering, the total value of the offering is roughly 3.0 billion euros ($2.85 billion), including an over-allotment option of 21.7 million shares. Because only 80.3 million of the 166.5 million shares were newly issued, proceeds for EADS totalled 1.6 billion euros ($1.52 billion), the company said in a statement issued Sunday night after lengthy regulatory delays. It said the IPO proceeds would help fund future projects including the planned Airbus A3XX jumbo jet, which is designed to smash U.S. rival Boeing’s grip on the jumbo market.
EADS is the largest global civilian and defence aerospace group behind Seattle-based Boeing and Bethesda, Md.-based Lockheed Martin. Based in Paris and Munich, EADS owns 80 percent of aircraft maker Airbus Industrie. It also makes helicopters, missile systems and military aircraft. The new company is a combination of France’s Aerospatiale Matra with Spain’s Casa and Dasa, the aerospace unit of DaimlerChrysler. EADS stock begins trading on Monday on the Frankfurt, Paris and Madrid exchanges. In providing the 15.4 billion euro valuation of the new company, the EADS spokeswoman Sunday night did not provide the breakdown of the company’s ownership structure.
Previously, EADS has said it ownership includes governments, banks and corporations. Including all the shares issued and employee stock ownership, roughly 30 percent of the
company stock will be floated on the market through the IPO. Reuters