Pirelli IPO: back on the market after two years

Pirelli is back on the stock market after two years; this is one of the most followed news during last days. For those who don’t know who Pirelli is, continue to read as we are going to give a brief description of this Italian company, plus an overview of the corporate profile.

Pirelli is a “pure consumer tire company” specializing in the production of high-end tires for cars and motorcycles. A historical group of Italian industry with almost 150 years of history. Pirelli’s principal activities put the company among the world’s leading tire manufacturers, unique in the industry to be specialized exclusively in producing tires for the consumer market, both car and motorcycle.

About 87% of sales come from car tires, the remaining part from motorcycles ones.

The group is a “pure consumer tire company” and its competitive positioning is the result of the change process begun at the end of 2015 following the public purchase offer launched by Marco Polo Industrial Holding (a company made up of China National Chemical Corporation, Camfin and the Russians of LTI).

Pirelli has a distinctive positioning in the high-quality tire industry, defined by the company as a product made to achieve the highest levels of performance, safety, silence and adherence to the road surface, characterized by a high technological and customizable components.

The Italian company produces tires for both vehicle manufacturers for new cars and for spare parts for cars in circulation.

Presented in the sports competitions since 1907, it is exclusive supplier since 2011 of the World Formula 1 Championship.

Stock exchange listing

These days, Pirelli is working hard for the stock market listing, the so-named IPO Pirelli, in a project that will make it one of the most important tire companies in Europe (indeed, Pirelli reports growth ahead of IPO)

It will be Marco Polo International, which currently holds 100% of the company’s share capital, to sell the shares that, is estimated, could reach up to a 40% of the total corporate structure for a total value of $11 billion (read Pirelli Reportedly Racing to Milan IPO Valued at Nearly $11 Billion). According to a news released a few days ago, Marco Polo’s share capital is held by 65% Spv Lux, indirectly controlled by ChemChina, for 22.40% by Camfin, indirectly controlled by Marco Tronchetti Provera and owned by UniCredit and by Intesa Sanpaolo, and 12.6% by the Russians of Long Term Investments Luxembourg.