MILAN, June 22 (Reuters) - Italian cash-for-gold trader Gens Aurea plans to list on the Milan stock exchange, it said on Monday, marking what would be the first major initial public offering in the country in three years.
Gens Aurea aims to list by the middle of July, looking for a valuation of around €1.4 billion ($1.6 billion), according to a source close to the matter.
The IPO process comes after gold prices surged to record highs in January, reaching a price of $5,595 an ounce.
The group, owned by private equity firm DVC Partners, said the offering would consist of a private placement of existing shares.
Gens Aurea operates through eight brands, including Orocash and OroCaja, running about 530 stores across Europe, mainly in Italy and, to a lesser extent, Spain. It also has operations in Portugal, Switzerland and Austria.
The company buys gold from retail customers and sells it primarily to European gold smelters, while also marketing investment gold and branded jewellery.
Gens Aurea reported revenue of €836 million last year, with earnings before interest, taxes, depreciation and amortisation (EBITDA) of €105 million. It is targeting revenue of €1.5 billion this year and an adjusted EBITDA of more than €200 million.
"(An IPO) will raise the group's public profile as a key enabler of recycled gold, strengthen brand awareness, and establish a broader base of long-term shareholders," said Gens Aurea Chair Inigo Barcaiztegui in a statement.
BNP Paribas and Jefferies are acting as joint global coordinators, while UniCredit is co-global coordinator. Banca Akros is joint bookrunner and Alantra is lead manager.
($1 = 0.8739 euros)
Reporting by Elisa Anzolin, editing by Alvise Armellini/Keith Weir
Source: Reuters