(Adds details, CEO comment, background)
PARIS, June 15 Societe Generale's car
leasing arm priced its stock market listing near the lower end
of its target range on Thursday, raising 1.2 billion euros in
France's biggest initial public offering in more than 18 months.
SocGen placed a 20 percent stake in ALD in a sale which was
a test of investor appetite for a company that combines cars and
The deal values ALD at around 5.78 billion euros.
ALD offers leases to corporate clients which make monthly
lease payments to cover financing, depreciation of the vehicle
and the cost of various services, such as tyre maintenance or
insurance, while the vehicle is still owned by ALD.
ALD, whose core clients currently include mid-sized
companies, is targeting individual customers in Europe who are
increasingly turning to leasing or sharing cars, rather than
ALD expects to expand its business with individual clients to
around 1 million cars in their fleet by 2025.
It aims to grow its fleet by 8 to 10 percent annually, up
from the 1.4 million cars it had as of the end of March 2017.
"ALD's listing will provide extra flexibility to accelerate
our expansion," the company's chief executive Mike Masterson
said in a statement.
ALD said it is ranked number three globally and number one
as a car leasing company in Europe by number of vehicles under
Along with European rivals, ALD faces some uncertainties
over the valuation of its fleet partly related to tighter
emissions regulations. Diesel engine vehicles account for 80
percent of the group's fleet and 93 percent of the group's fleet
The sale includes an over-allotment option, which if taken
into account would increase the size of SocGen's stake sale to
23 percent, raising 1.3 billion euros.
($1 = 0.8964 euros)
(Reporting by Maya Nikolaeva; Editing by Edmund Blair and Jane