Italy’s treasury set a price range for the IPO of the post office that values it at up to €9.8 billion, in what will be the country’s biggest privatisation in a decade.

The post office group will be offering up to 38.2 per cent of its capital, in a price range of €6-€7.50 per share, roughly in line with market expectations.

The offer price suggests the sale of Poste Italiane could raise up to €3.74 billion.

The listing is a key plank of prime minister Matteo Renzi’s efforts to revive state asset sales to help cut Italy’s public debt. While the proceeds pale in significance against the country’s €2.2 trillion debt, the sale fits with his long-term agenda of making institutions more efficient.

Poste Italiane said it will pay out at least 80 per cent of its 2015 and 2016 net profit in dividends. – (Reuters)