Greece is taking a prudent approach on its most emblematic courting of the equities market since its 2009 debt crisis. Athens International Airport (AIA), 55%-controlled by the Greek state, has won approval to offer 30% of its stock at between 7 euros and 8.2 euros a share, implying a market capitalisation of between 2.1 billion euros and 2.4 billion euros. With net debt of 405 million euros at the end of September and 460 million euros in cash dividends due to investors pre-IPO between then and now, the airport operator should command an enterprise value of around 3.3 billion euros.
That is not excessive. At 7.6 times its annualised 2023 EBITDA of around 430 million euros, AIA’s valuation looks cheap in comparison with average trailing multiples of around 11 for the industry, per Breakingviews calculations based on LSEG data. That should ensure a smooth market takeoff. Existing shareholders will in any case walk away happy: generous pre-IPO dividends should ensure the Greek government takes home up to 1.2 billion euros with the sale, while keeping a toe in the airport company. (By Lisa Jucca)
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