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By Sonya Dowsett
MADRID, March 23 (Reuters) - Spanish car parts maker Gestamp will price its IPO at 5.6 to 6.7 euros per share, it said on Thursday, valuing the company at around 3.5 billion euros ($3.8 billion) in one of Europe's biggest stock market listings so far this year.
Gestamp, which makes car doors, pedal systems and other components in factories from Russia to Mexico, said in a prospectus to the market regulator that it aimed to list on the Spanish stock exchange on April 7.
It will be Spain's third initial public offering announced this year as European companies take advantage of buoyant stock markets. Cash-in-transit security firm Prosegur Cash listed on Friday and home builder Neinor is due to list on Wednesday.
Gestamp, owned by the Riberas family, said it aimed to distribute a dividend worth around 30 percent of net income every year, starting with a payout linked to 2017 next year.
Gestamp reported core earnings of 841 million euros in 2016, a 10.6 percent increase on the previous year. The family will retain control of the company following the operation, owning over 50 percent of shares and voting rights.
The family will raise gross proceeds of around 1.1 billion euros if the over-allotment option is exercised, the prospectus said. The deal will improve transparency and broaden the shareholder base, the company said. The funds raised will not be re-invested in Gestamp.
Book building will start on March 23 and end on April 5.
JP Morgan, Morgan Stanley and UBS are the joint global coordinators and joint bookrunners on the deal. Santander, Deutsche, Societe Generale are also bookrunners. The financial advisor is Lazard. ($1 = 0.9269 euros) (Editing by Ruth Pitchford)