Befesa is the largest initial public offering (IPO) in Germany this year after online takeaway food delivery group Delivery Hero (>> Delivery Hero AG) and ahead of meal kit group HelloFresh, which listed earlier this week.
Befesa, which controls almost half of Europe's steel dust recycling market, said in a statement it would raise up to 461 million euros ($537 million), assuming full take-up of an over-allotment option.
The company is offering 14.3 million shares, plus up to 2.1 million more additional shares as part of the overallotment.
If that is fully taken up, its market capitalisation would total 954 million euros. Private equity shareholder Triton is selling down its stake. Befesa would have a free float of 48.3 percent if the offering is fully taken up.
Befesa collects steel dust from so-called mini-mills that melt scrap to produce new steel.
While it gets fees for accepting hazardous waste, it generates up to 90 percent of sales at its steel unit by selling zinc it extracts from the steel dust to companies such as Glencore (>> Glencore), Nyrstar (>> Nyrstar) or Korea Zinc (>> Korea Zinc Co Ltd). It has a similar, but smaller aluminium operation.
In the 12 months to the end of June, Befesa posted group adjusted earnings before interest, tax (EBIT) of 133 million euros on sales of 685 million euros.
Befesa was listed in Spain from 1998 to 2011. Spain's Abengoa bought a controlling stake in 2000 and later squeezed out minorities. It sold the company on to Triton in 2013 for 850 million euros in cash, or 1.1 billion euros including debt.
(Reporting by Arno Schuetze; Editing by Douglas Busvine and David Evans)
