Aena IPO Price Values Airport Operator at $9.9 Billion

by Charles Penty

Aena, the world’s biggest airport operator by passenger volume, operates 46 airports and participates in the management of another 15 in Europe and the Americas, including London Luton in the U.K. Photographer: Simon Dawson/Bloomberg

(Bloomberg) -- Spain is set to raise as much as 4.26 billion euros ($4.8 billion) in the sale of a stake in airport operator Aena SA after setting the price at the top end of the range in the country’s biggest initial public offering in more than seven years.
The Spanish government is selling a stake of as much as 49 percent at 58 euros per share in a transaction valuing the company at 8.7 billion euros, Aena said in a filing to regulators today. The government earlier this month increased the high end of the price range to 58 euros a share from 55 euros.
Demand from institutional investors was five times the amount of shares offered to them in Spain’s largest stock debut since the country’s recession. Aena, the world’s biggest airport operator by passenger volume, operates 46 airports and participates in the management of
another 15 in Europe and the Americas, including London Luton in the U.K.

The IPO unseats that of Sunrise Communications AG as Europe’s biggest this year. The Swiss phone company raised 2 billion francs ($2.2 billion) in an offering earlier this month.
The new shares in Aena are due to start trading on Wednesday. Spain is selling the stake through Enaire, Aena’s holding company. A government adviser said in October the IPO would value Aena at 8.03 billion euros at most.

Offer Terms

Enaire fixed the size of the offering at 44.55 percent of Aena’s capital, an amount that can be raised to 49 percent if an over-allotment option is exercised. Of the total 73.5 million shares offered in the sale including the so-called “green shoe,” 69.7 million would be sold to institutional investors and 3.82 million to retail investors.
The Children’s Investment Fund Management will acquire a “significant stake” in the company and the hedge fund will hold a seat on the board, Aena said. Two other investors who had shown interest in becoming “core” shareholders in Aena dropped out after the increase in the IPO’s price range.
A record 65 million foreign tourists visited Spain in 2014, rising an annual 7.1 percent, the biggest increase in 14 years, the Industry Ministry said last month.