Italian cash-for-gold trader Gens Aurea plans Milan listing, ending IPO drought

By Elisa Anzolin and Elvira Pollina

MILAN, June 22 (Reuters) - Italian cash-for-gold trader Gens Aurea plans to list on the Milan stock exchange, it said on Monday, marking what would be the first major initial public offering in the country in three years.

Gens Aurea aims to list by the middle of July, looking for a valuation of around €1.4 billion ($1.6 billion), according to a source close to the matter.

The IPO process comes after gold prices surged to record highs in January, reaching $5,595 an ounce.

The group, owned by private equity firm DVC Partners, said the offering would consist of a private placement of existing shares.

Gens Aurea operates through eight brands, including Orocash and OroCaja, running about 530 stores across Europe, mainly in Italy and to a lesser extent Spain. It also has operations in Portugal, Switzerland and Austria.

COMPANY PLANS EUROPEAN EXPANSION

CEO Fabio Godano, speaking to Reuters on Monday, said the decision to list was partly driven by plans to expand in Europe’s fragmented market, with a particular focus on Germany.

"We have a plan to open 300 new stores over the next three years, so a significant share of our growth is certainly coming from our ability to open stores very quickly and efficiently,” he said.

The company buys gold from retail customers and sells it primarily to European gold smelters, while also marketing investment gold and branded jewellery.

Godano said Gens Aurea this year will trade around 14 metric tons of gold and aims to benefit from growing demand from major jewellery brands for recycled gold to make their products. 

Gens Aurea reported revenue of €836 million last year, with earnings before interest, taxes, depreciation and amortisation of €105 million. It is targeting revenue of €1.5 billion this year, and an adjusted EBITDA of more than €200 million.

BNP Paribas and Jefferies are acting as joint global coordinators, while UniCredit is co-global coordinator. Banca Akros is joint bookrunner and Alantra is lead manager.

($1 = 0.8739 euros)

(Reporting by Elisa Anzolin, editing by Alvise Armellini, Keith Weir and Jan Harvey)