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Spanish Baker Europastry Said to Consider Reducing IPO Size

Finished bakery products in the cereal research center at Europastry's Advanced Lab. in Sant Joan Despi, Spain, on Tuesday, June 25, 2024. Bakery firm Europastry SA announced plans for an initial public offering on Spanish stock exchanges, the latest in a reviving European market after two years of muted activity. (Angel Garcia/Bloomberg)

(Bloomberg) -- Spanish bakery firm Europastry SA is weighing whether to reduce the size of its planned initial public offering, according to people familiar with the matter.

The advisers on the deal are speaking with investors about the potential downsize, the people said, asking not to be identified as the information isn’t public.

At the top of the marketed price range, Europastry’s offering would raise around €210 million ($235 million) from the sale of new shares and €295 million from shares sold by existing shareholders, including the founding Galles family and buyout group MCH Private Equity. The company is considering reducing the portion of existing shares being sold, one of the people said.

A representative for Europastry declined to comment.

The offering was marketed at €15.85 to €18.75 apiece. Europastry was aiming to have a market capitalization of €1.51 billion if shares were sold at the top of the range. 

Europastry, which supplies bread and pastries to the likes of Starbucks Corp., Dunkin’ and Pret A Manger, is seeking to list in the Spanish market on Oct. 10.

The company had called off an earlier attempt to go public in June, blaming a bout of volatility spurred by the European Union parliamentary elections held at the time.

Other mid-cap companies in Europe have delayed their IPO plans this year, including Italian sneaker maker Golden Goose SpA, which postponed its listing plans in June.

--With assistance from Swetha Gopinath.

(Updates with potential offering size in third paragraph.)

©2024 Bloomberg L.P.