Montana Aerospace Is Said to Select Banks for Energy Unit IPO

Montana Aerospace AG has hired banks for an initial public offering of its energy components unit, which could be valued at about €500 million ($549 million), people with knowledge of the matter said.

(Bloomberg) — Montana Aerospace AG has hired banks for an initial public offering of its energy components unit, which could be valued at about €500 million ($549 million), people with knowledge of the matter said.

This Swiss-based technology company has picked Berenberg as sole global coordinator for a listing of the ASTA business, according to the people. Commerzbank AG and Erste Group Bank AG have been appointed as bookrunners, they said.

Montana Aerospace and its advisers have started pitching the potential share sale to investors in so-called early look meetings, the people said, asking not to be identified discussing confidential information. ASTA is expected to be listed on the Vienna Stock Exchange as soon as June, the people said. 

Deliberations are ongoing and no final decisions on the size or timing of any listing have been taken. Representatives for Montana Aerospace and the banks declined to comment.

Backed by Austrian entrepreneur Michael Tojner, Montana Aerospace manufactures components for the aviation, energy and e-mobility sectors. The company said last month that it was exploring options for its energy unit, which comprises ASTA Energy Transmission Components GmbH and its subsidiaries.

ASTA makes copper parts for transformers, generators and motors for the high-voltage industry. It could be attractive to investors seeking greater exposure to the global shift toward cleaner forms of energy. Montana Aerospace’s broader energy operations saw net sales rise 25% to €479.6 million in 2022, as demand for alternative energy sources rose on the back of Russia’s invasion of Ukraine. 

Europe IPO’s market is slowly spluttering back to life after a period of heightened volatility that’s deterred both issuers and investors. Companies including Italian gambling company Lottomatica SpA, German web-hosting company Ionos SE and electric motor component maker EuroGroup Laminations have all braved the markets this year.

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