Swiss aseptic carton packaging manufacturer SIG Combibloc Group AG plans to raise at least €1 billion from an IPO of newly issued shares on the SIX Swiss Exchange.
The offering may also include existing shares held by certain members of management and SIG's majority owner, Canadian private equity firm Onex Corp., in a bid to further increase the company's free float. Onex is likely to retain a stake of at least 50% in SIG following the IPO.
SIG expects to use net proceeds from the offering, which is subject to market conditions, to reduce its leverage ratio to a range of 3.00x to 3.25x.
The company expects to pay a dividend of about €100 million for the 2018 financial year and intends to pay between 50% and 60% of adjusted net income in dividends from 2019 onward.
The board is expected to comprise eight members and will be chaired by Andreas Umbach. Nigel Wright and David Mansell are also expected to be on the board as Onex representatives.
Bank of America Merrill Lynch, Credit Suisse and Goldman Sachs International are acting as joint global coordinators and joint book runners for the planned IPO. Barclays, Citigroup, Morgan Stanley and UBS Investment Bank are joint book runners, while UniCredit Bank AG and Vontobel are co-lead managers. Rothschild & Co. is the independent financial adviser to SIG.