Marazzi to float

Italian tile maker Marazzi is to float on the Mercato Telematico Azionario of the Milan Stock Exchange providing a partial exit for its private equity backers Permira and Private Equity Partners. The two firms invested in the business in October 2004 when Permira acquired a 28% stake and Private Equity Partners acquired a 5% stake. The original plan for the company was to work towards a listing within three to five years. The current intention to list is well ahead of the schedule, less than two years since the original investment.

The two firms will reduce their stakes to 7.7% after the float and the Marazzi family will dilute their majority stake to 60%.

Marazzi is offering 28.9 million new and existing shares priced between €10.25 and €13 per share, giving the business a potential market cap of around €1.25bn.