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Italy may boost Enel IPO
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October 25, 1999: 6:58 a.m. ET
Report: Utility sell-off could top $19B to become world's largest market debut
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LONDON (CNNfn) - The Italian government is set to raise the size of the stake offered in the partial privatization of diversified utility Enel to as high as 18 billion euros ($19.6 billion), which would make it the world's biggest ever initial public offering.
The Italian Treasury has agreed in principle to sell a 34.5 percent stake in Enel, significantly higher than the 20 percent -- excluding a 3 percent over-allotment or green shoe option -- originally envisaged, because of strong international demand for the shares, according to the Financial Times.
"As far as the size of the stake -- which is now 20 percent -- is concerned, we have already expressed willingness for a possible increase. However, before taking a definitive decision on the number of shares on offer, we will have to wait for the final outcome of the IPO which starts Monday," Treasury Minister Guiliano Amato said in a statement.
The announcement of the decision made late Friday was postponed, however, until the end of the offer period, which concludes at the end of the week, because of the uncertain state of the world financial markets, the FT reported.
The increased size of the offer could make it the world's largest stock market debut in history, if the offering is priced at the top end of the range, set at 3.9 to 4.3 euros per share.
Presentations to the international institutional investors starts Monday, amid expectations of strong demand for shares in the world's second-largest electricity company in terms of its 29 million customers.
The partial privatization of Enel at the higher end of the range would raise more cash that last year's $18.2 billion IPO of NTT DoCoMo, Japan's largest cellphone network operator.
The Treasury plans to allocate at least 40 percent of the IPO to the Italian public. 
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