Institutional placement of shares by Italy’s  web company Banzai spa,a leading Italian e-Commerce operator and one of the most important digital publishers, started yesterday and will finish next February 11th. Banzai’s listing on the Italian Stock Exchange market at the Star segment is expected on February 16th  (see here the press release and a previous post by BeBeez),
The ipo will consist both a capital increase (8 million shares) and a sale of shares (other 8 million shares) by actual shareholders but fundraising aimed at the capital increse will have priority till reaching a 50 million euros target,
Banzai’s equity value has been valued between 220 and 277 million euros (before the capital increase) corresponding to a price range of 6.75-8.50 euro per share. After the capital increase the equity value would be 274-345 million euros.
If the institutional placement is fully subscribed: Arepo BZ, a company that is indirectly controlled by Sator Private Equity Fund (managed by former banker Matteo Arpe), will own 12.92% of the share capital; company’s founder Paolo Ainio will own a 21.45%stake; the 17 top managers of the company will jointly own a 9.34% stake; other shareholders (with Principia fund among them) will jointly own 16.89%; and public float will be 39.4% of the share capital which is valued 136 million euros at the maximum price of 8.5 euro per share.
The selling shareholders will grant the joint global coordinators (Jefferies International Limited and Banca Profilo spa)Â an over-allotment option to subscribe up to 2,4 million additional shares, representing 15% of the maximum number of shares offered pursuant to the placement.
Cash coming from the capital increase will be used to finance the development of the business which is still in a start up phase. “It is not possible to anticipate at the moment if and when the company it to reach a breakeven point and if and when it is able to generate profits and distribute dividends”, the Prospèctus says (download here the Prospectus).
Shareholders are actually evaluating the company on a sky rocket rising of its future expected sales and unique audience. The latter is already quite a record in Italy: Banzai is the first online Italian player by far with more than 18 million unique users per day and is number four in Italy after  Google, Facebook e Microsoft.
Banzai reached 120.3 million euros in revenues in the 9 months till last 30th September (+21% from 99.5 millions in 9m 2013), with an ebitda of 1.2 millions (from 0.2 millions) Â and and ebit of -2.8 milioni (from -2.4 milioni),with a net financial debt of 5.2 millions (from net cash of 4.2 millions) after having invested 6.3 millions.
In 2013 Banzai reached 153 milllion euros in revenues with 2 millions of ebitda, an ebit of -5.8 millions and a net loss of 6.34 millions. The latter piled up with previous net losses that the company has been suffering since 2009 to a total of 30 million euros of net losses. The company anyway estimates to reach 180-190 million euros in 2014 with an ebitda over 5.5 millions.
