MILAN: Italian high-tech group SECO said on Monday it aimed to float up to 45% of its share capital on the Milan stock exchange to get fresh resources to grow abroad through acquisitions.

SECO, which develops embedded microcomputers and 'internet of things' solutions, expects to launch the offer in the second quarter, making it the second listing on the Milan bourse's main market this year following the debut in March of biotech firm Philogen.

The European IPO market recorded its strongest quarter since 2015 in the first three months of 2021, with the listing of several tech and e-commerce companies. But a debilitating stock market debut for online food delivery company Deliveroo cast doubts on whether the momentum could last.

Tuscany-based SECO plans to sell up to 37.8 million shares, of which up 27 million will be newly issued. The size of the offer could be increased by up to 15% through an overallotment option.

The company aims at a market capitalization of 400-500 million euros ($476-595 million) after the capital increase, a source close to the matter said.

SECO said it would use cash from the new share sale for acquisitions and international expansion.

SECO's chief executive told Reuters the group is looking at possible M&A deals in Germany, the United States and China.

"We decided to list on the Milan Stock Exchange to get fresh resources in order to become a European leader in our sector," CEO Massimo Mauri told Reuters in a phone interview.

The group is jointly controlled by founders Daniele Conti and Luciano Secciani. Italian state-backed fund Fondo Italiano di Investimento holds a 20% stake in the company.

SECO reported revenues of 76.1 million euros last year, with adjusted core earnings of 15.9 million euros.

Goldman Sachs and Mediobanca are acting as joint global coordinators for the IPO.