Key points:
- Cirsa announced a €460m initial public offering
- The offering combines a €400m primary issuance and a €60m secondary sale
- Listing on the Automated Quotation System is subject to market conditions and regulatory approval by Spain’s CNMV
Cirsa has announced its intention to proceed with an initial public offering of its ordinary shares on the Barcelona, Bilbao, Madrid and Valencia Stock Exchanges.
The offering will comprise a primary issuance of €400m ($428m) and a secondary sale of approximately €60m.
According to the official statement, the primary offering aims to raise capital to support the company’s growth strategy and reduce its debt. The secondary sale, to be carried out by LHMC Midco, will be used to cover taxes and other costs related to the restructuring of management holdings.
Cirsa currently operates in 11 countries, including Spain, Italy, Morocco and several regulated markets in Latin America. The shares are expected to be listed on the Automated Quotation System, subject to market conditions and approval by the Spanish Securities Market Commission (CNMV).
The transaction will also include a customary overallotment option granted by LHMC Midco to the Joint Global Coordinators, on behalf of the Joint Bookrunners.
Good to know: Cirsa has recently reported a year-on-year revenue rise of 12.5% to €576.7m
Approximately €375m of the primary proceeds will be allocated to funding Cirsa’s growth strategy and repaying existing debt. Following the transaction, the company expects to reduce its net leverage ratio to approximately 2.7x EBITDA as of May 31, 2025.
The secondary sale will not result in cash proceeds for current or former members of management, except for tax and expense coverage. Their investment in Cirsa will be reorganized and directly held in the company upon listing.
Antonio Hostench, Cirsa CEO, said: “We are an innovative company that seamlessly integrates both physical and online channels. Today, we are taking a defining step to continue writing another page in this extraordinary history of growth by announcing our intention to go public, which will provide us with the opportunity to undertake new projects and continue to consolidate our leadership in the sector.”
