Milan, Italy - Pirelli Tyre has reportedly reduced the minimum price of its share issue by 10 percent, according to international newswires. No one from Pirelli was available to comment on the reports.
Pirelli is attempting to raise up to â‚¬810 million from the sale of up to 90 million shares in the tyre unit. The offer closes tomorrow (30 June). Share prices around the world have bneen falling recently, and tyre companies have been affected by Bridgestone's announcement that profits will be hit by surging natural rubber prices.
Pirelli initially said the shares would sell for between â‚¬7.40 and â‚¬9.00 each, but now appears to have cut the minimum to â‚¬6.60. The price reduction will reduce the amount raised in the sale to around â‚¬600 million, assuming it manages to sell all the shares.
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Pirelli Tyre cuts IPO minimum price to 6.6 eur - report AFX via Forbes (Italy)