EY guides Primafrío´s IPO

EY Abogados has advised Primafrío Corporación on its Initial Public Offering and admission to trading on the Spanish Stock Exchange

Primafrío Corporación, a European leader by revenue in fruit and vegetable road freight logistics, announced its intention to proceed with an initial public offering (IPO) of part of its existing ordinary shares to qualified investors.
The CNMV has approved the prospectus. The selling shareholder is selling 35,000,000 existing ordinary shares at a price per share expected to be between €9.30 and €12.10 in the Offering and will grant an option to the Joint Global Coordinators on behalf of the Managers (to acquire a number of additional existing ordinary shares of the company representing up to 10% of the offered shares, and together with the offered shares, at the offering price (less agreed commissions) to cover over-allotments of offered shares in the offering, if any, and short positions resulting from stabilisation transactions.

The company has applied for admission of the shares to listing on the Madrid, Barcelona, Bilbao and Valencia Stock through the Automated Quotation System of the Spanish Stock Exchanges (the SIBE). The IPO will comprise an offering of existing shares by the company’s current sole shareholder, Krone-Mur Servifrío, S.L.

Primafrío is expected to debut on the market on 24 June, valued at between €1,302 million and €1,694 million.

Primafrío, founded in 2007, is the leader by revenue, EBIT margins and fleet size in temperature-controlled road freight logistics of fruits and vegetables in Spain, and the European leader by revenue in fruits and vegetable road freight logistics. Primafrio specialises in providing the highest quality temperature-controlled logistics services from the main fruit and vegetable production areas located in Spain to 25 European consumer markets among which Germany, Spain and the UK represent the majority of its revenue, by destination of cargo, in 2020 (35%, 24% and 9%, respectively). Primafrío had a 2020 revenue of €458 million and an EBIT of €81 million (18% EBIT margin), growing at a 10.8% and 67.8% CAGR since 2018, respectively.

J.P. Morgan and Morgan Stanley act as Joint Global Coordinators and Joint Bookrunners. The Joint Bookrunners are Banco Santander, CaixaBank, Berenberg and Société Générale. The Co-Lead Managers are Alantra, Commerzbank, JB Capital, Kempen & Co and the Agent Bank is CaixaBank.

The financial advisor to the company was Global Finanzas Investment Group. The Legal advisors to the company are EY Abogados as to Spanish Law and Mayer Brown International as to English and US Law, while Linklaters is the Legal advisor to the Managers.

EY Abogados led the legal advice on the second IPO of the year, and the first in a sector outside renewables since 2018, advising Primafrio on the Initial Public Offering and admission to trading on the Spanish Stock Exchanges with a Capital Markets and Corporate Governance legal team led by area head partner Lourdes Centeno Huerta (pictured), along with senior manager Alfonso García-Fuster, managers Pilar Garcia Mohedano and Blanca Iribas Poher, and junior Laura Aparicio Navas.

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