IPO prices Dufry South America at between $680m and $810m

Tina Milton

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Dufry Group South America will launch its Initial Public Offering (IPO) on December 5 with market capitalisation estimated at between $680m and $810m

Dufry Group South America will launch its Initial Public Offering (IPO) on December 5 on the Luxembourg and Brazilian stock exchanges. The price range has been set at between $10.50 and $12.50 per share, which values the company at between $680m and $810m. Dufry AG will retain a stake of at least 51%.

The offer period will start on December 5 and is expected to end on December 18, with the first trading day scheduled for the same week.

During the first nine months of 2006 Dufry’s turnover increased by 49% to SFr1.23bn ($1.07bn) compared with the same period in 2005. Of this, organic growth contributed 8%, new concessions accounted for 12% and the growth of the South American business amounted to 29%. All regions posted double-digit increases, driven by organic growth, refurbishments and new concessions signed during 2006.

Gross profit margin increased to 51.7% in the first nine months due to improved conditions with suppliers as well as changes in the sales mix.