Marazzi's IPO Fully Subscribed on Retail Side

Milan, Italy, February 10, 2006-- The initial public offering of Marazzi Group SpA, the Italian ceramic tile maker, is more than fully subscribed on the retail side, a person familiar with the situation said Friday. Institutional orders are strong, especially from U.S. and U.K. funds, some of which have placed individual orders for more than EUR10 million in shares each, the person said. Marazzi Group is selling 30% of its shares to raise funds for expansion. The IPO ends Friday. "Italian retail investors have jumped at the shares," the person familiar with the situation said. "As for institutional orders, that side is going well although the final book will depend on the price." Marazzi and the IPO advisers Morgan Stanley (MS) and Mediobanca SpA (MB.MI) will set the final price over the weekend. The intiial price range was EUR10.25 to EUR13 a share. The likely final price will probably be in the middle of that range, somewhere between EUR11 and EUR12 a share, a figure indicated as appropriate by analysts canvassed by the company, the person said. That range would attribute a market capitalization for Marazzi of EUR1.13 billion to EUR1.23 billion for the company. The IPO consists of a capital increase and the sale of some of the stakes owned by private equity firms Permira (PR.YY) and Italy based Private Equity Partners. Marazzi shares are slated to begin trading on Feb. 15. Marazzi is the market leader or second-largest player in most of the commercial markets where it operates. It had around EUR1 billion in revenue in 2005. It has operations in Italy, France, Spain, Russia and the U.S., and is looking to expand in China and the U.S.

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