The company, in which French private equity group Tikehau Capital has a 30% stake, could announce its intention to float from next week, with a view to listing in February , one source said.
News of the Euro Group’s ambitions was first reported by Bloomberg on Thursday. It comes as Germany’s United Internet prepares to list its web hosting subsidiary Ionos, as reported.
The issue is likely to include a mix of new and existing shares, giving shareholders a chance to cash in, a second source said.
Euro Group, which produces rotors and stators for a range of applications such as cars and home appliances, is targeting a float of 30% to 40% in order to raise around 400 million euros in revenue, a third source added.
Euro Group and Tikehau Capital both declined to comment.
The plans are contingent on market conditions, one of the sources warned.
Stock markets experienced gains amid signs that inflation may be on the way down, which could lead central banks to reduce aggressive interest rate hikes. The Stoxx Europe 600 Index is up more than 6% so far this month.
The CBOE Market Volatility Index, a key indicator of market conditions, was below 20 on Friday morning – a level that IPO bankers see as leading to fresh issuance.
JPMorgan, BNP Paribas, UniCredit and Intesa Sanpaolo are global coordinators in the bid, with Rothschild acting as financial adviser, the sources said.
(Reporting by Elisa Anzolin; additional reporting by Pablo Mayo Cerqueiro; writing by Pablo Mayo Cerqueiro; editing by Elisa Martinuzzi and David Evans)
By Elisa Anzolin
