Flotation fever spread across the continent today as Imperial Tobacco prepared to list part of its business on the Spanish stock market.
Despite recent listings by companies such as Saga disappointing in the UK, the maker of Rizla and Golden Virginia said it plans to spin off the Logista unit in a move that could value it at up to £1.5 billion.
Logista distributes goods from customers, which includes its parent company as well as pharmaceutical companies and publishers, to outlets such as bookshops, gas stations and convenience stores across southern Europe.
Imperial, led by Alison Cooper, inherited the business when it bought cigarette maker Altadis in 2008 but will retain a majority stake following the initial public offering. Analysts said the float would free cash and enable it to focus on its core cigarettes business.
Luis Egido Gálvez, chief executive of Logista, said the company will return to the stock market in Madrid for the first time since 2008.
He added: “During the last three financial years, we have been able to maintain a solid operating performance despite the general decline in tobacco volumes and the weak economic environment in the principal markets in which we operate.
“Cost efficiency measures and our geographical diversification across Spain, France, Italy and Portugal have helped offset any country-specific impact on our business.”
Elsewhere, European stock markets operator Euronext said it plans to raise up to €1.158 billion (£939 million) by listing on its own markets in Paris, Amsterdam and Brussels.
Euronext was bought by NYSE Group in 2007 to form the world’s biggest stock-exchanges operator. The enlarged group was subsequently acquired by Intercontinental Exchange last year, which promised European regulators it would spin off Euronext.
Institutional investors including BNP Paribas, Société Générale and ABN Amro will take a 33.36 % stake in the company in the listing, which will be completed later this month.
