Italy's Cerved could have 1.35 bln-euro market value in IPO - Banca IMI

By Elisa Anzolin

MILAN, May 21 (Reuters) - The initial public offering of Italy's Cerved Information Solutions could give the business information provider a market capitalisation of 1.11-1.35 billion euros ($1.52-1.85 billion), according to a research report by Banca IMI, one of the IPO's global coordinators.

The estimate includes a 250 million euro capital increase that is expected to take place as part of the offering.

Cerved, which had net debt of 722 million euros at the end of 2013, filed for a listing on the Milan stock exchange in April. A source close to the matter has said Cerved aims to float 35-40 percent of its share capital in June.

The Banca IMI report, which was reviewed by Reuters, highlights Cerved's strong revenue visibility and solid cash flow generation but sees possible pricing pressure from banking clients and a net debt pile of 4.8 times core profit as risks.

Analysts at Deutsche Bank (Xetra: DBK.DE - news) , one of the IPO bookrunners, give Cerved an enterprise value of 1.5-2.1 billion euros based on a discounted cash flow evaluation method. They value the Italian firm at 1.6-2.4 billion euros by comparing it with peers such as Britain's Experian (Other OTC: EXPGF - news) and U.S. group Equifax (NYSE: EFX - news) .

Private equity firm CVC Capital Partners bought Cerved from Bain Capital and Clessidra in January 2013 in a deal that valued the Milan-based company at 1.13 billion euros. ($1 = 0.7302 Euros) (Writing by Danilo Masoni; editing by Agnieszka Flak)