German investment firm Mutares is weighing strategic options for Portuguese engineering group Efacec, including a potential sale or initial public offering in Lisbon, according to people familiar with the matter. The company is working with JPMorgan Chase on evaluating these alternatives, though no final decisions have been made and any transaction remains uncertain.

Efacec, founded in 1948, emerged from government control in 2023 after Mutares acquired the firm that was previously owned by Angolan billionaire Isabel dos Santos. She became a fraud investigation suspect, prompting Portugal to take control in 2020 before returning it to private ownership.

The engineering firm, which employs approximately 1,660 staff, manufactures equipment for power grids, rail networks and EV charging systems. It reported an order backlog exceeding €700 million and projected EBITDA of €40 million to €50 million this year. Cantor estimates the enterprise value could reach €300 million to €420 million, potentially higher in a competitive auction.

A listing would mark only the second IPO on Euronext Lisbon since 2021, highlighting the exchange's limited activity with just 16 companies in its PSI Index. This scarcity makes any new listing particularly significant for market development.