(Adds comment from CEO, details)
ZURICH, May 30 (Reuters) - Machinery maker Klingelnberg plans to raise around 20 million euros ($23.1 million) by selling new shares on the SIX Swiss Exchange, with the cash going to help boost growth, it said on Wednesday.
The 155-year-old Zurich-headquartered company with roots in the industrial region surrounding Remscheid, Germany, makes gears for trains and automobiles including Formula 1 racing cars as well as precision machinery for grinding and measuring.
The initial public offering, planned for coming months depending on market conditions, will consist of shares from the Klingelnberg family that now is sole owner as well as newly issued shares.
The free float is expected to amount to about 50 percent, before a 10 percent overallotment option, the company with annual sales of around 260 million euros said in a statement.
"Now is the right time to offer shares to the public," said Chief Executive Jan Klingelnberg, who will remain in the post after the transaction.
He said the IPO would allow Klingelnberg "to pursue additional growth and acquisition opportunities, and to raise our profile amongst customers, talent and other stakeholders around the world".
The CEO did not say how much money the family expects to pocket from the deal but it plans to remain a major shareholder, with a lock-up period of two years.
Klingelnberg has around 1,300 employees, spread between engineering and production sites including in Switzerland, Germany and Hungary.
Credit Suisse and Berenberg are joint global coordinators and joint bookrunners for the IPO. Vontobel is joint bookrunner. ($1 = 0.8665 euros) (Reporting by John Miller; Editing by Michael Shields)