Poste Italiane IPO Attracts Sovereign Wealth
The Italian government raised €3.4 billion (US$ 3.8 billion) in its initial public offering (IPO) for Poste Italiane SpA, a postal company that has business lines in finance and insurance. This is Italy’s largest IPO since 1990 and largest state sell-off since 2005. The symbolic move could suggest that Italian Prime Minister Matteo Renzi is keen on opening up Italy’s economy to overseas institutional investors. Renzi is on a quest to modernize Italy, while cutting the country’s heavy debt load. The final price was set for €6.75 per share. The IPO values the postal giant at €8.8 billion (US$ 9.9 billion). The IPO offered a 34.7% stake of Poste Italiane. Italy’s Department of the Treasury will remain the largest shareholder of Poste Italiane, holding more than 60%. The IPO increases a level of public accountability and transparency for the postal institution.
IPO Details and Sovereign Wealth Funds
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