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UPDATE 1-Spain's Cintra valued at 4.5 bln euros in IPO
Fri Oct 8, 2004 02:06 PM ET
(Adds detail from paragraph two)
By Juan Navarro

MADRID, Oct 8 (Reuters) - Spain's stock market commission gave the green light for the public sale of around 40 percent of shares in toll road firm Cintra on Friday, valuing the entire firm at up to about 4.5 billion euros ($5.54 billion).

According to the sale prospectus, Madrid's third initial public offering (IPO) this year will start on Monday, with shares likely to be sold within a range of 8.24 euros to 8.80 euros each, in line with market expectations.

About 47.5 percent of the initial 186.48 million shares on offer -- excluding a greenshoe or oversubscription tranche -- will be sold to international institutional investors, while about 37.4 percent will be offered to Spanish retail investors.

Spanish institutions are being offered 15 percent of the shares, while employees will get 0.10 percent.

The shares are due to start trading on the stock market on October 27.

The offering is being made possible by the sale of the entire stake held by Australia's Macquarie Infrastructure Group (MIG.AX: Quote, Profile, Research) and the sale of Cintra treasury stock.

The rest of the shares on offer are the result of a capital increase in which current shareholders renounce their preferential rights to buy shares, for 42.24 million shares.

Cintra's main shareholder Ferrovial (FER.MC: Quote, Profile, Research) , which has a 60 percent stake, will maintain its interest at around that level.

Book-building runs from October 11 to 19, although orders can be cancelled up to October 22. A maximum price for retail investors will be set on October 19.

In the prospectus Cintra said it was currently bidding for a total 12 motorway contracts in Europe and in the United States, with an estimated investment of 8.0 billion euros.
It estimated it would have a dividend yield of between 1 and 2 percent.

Cintra manages 16 toll roads in Spain, Portugal, Ireland, Canada and Chile and also manages close to 200,000 parking spaces.

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On the same basis, that compares with a valuation of up to 4.0 billion euros if shares were sold at the top of the indicative price range.