Leonardo Eyes IPO for US-Based DRS Subsidiary

Leonardo Eyes IPO for US-Based DRS Subsidiary

Italy-based aerospace and defense conglomerate Leonardo is considering listing its U.S. subsidiary on the New York Stock Exchange through an initial public offering to potentially raise $2.54 billion, Reuters reported Saturday.

According to newspaper Il Messaggero, the possible listing of Arlington, Virginia-based Leonardo DRS is intended to support the parent company’s strategy and secure fresh liquidity. The transaction could include a cash call and a 40 percent stake divestment in Leonardo.

Leonardo would conduct a board meeting this week to decide on the IPO, which is expected to close by March, the newspaper added. Leonardo, then Finmeccanica, acquired defense company DRS Technologies in 2008 for approximately $5.2 billion.

The defense group announced in November that it intended to maintain control of Leonardo DRS if the latter goes public.

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