German residential real estate developer Instone Real Estate Group priced its initial share offering at €21.50 per share, at the lower end of its €21.50 to €25.50 price range, raising roughly €428 million.
A total of 19,900,000 shares were placed with institutional investors, comprising 7 million new shares and 12,900,000 existing shares from current shareholders.
The company's market cap will be approximately €795 million at the beginning of trading based on the placement price.
Net proceeds from the new shares were roughly €142 million, of which the company plans to use €86 million to acquire and develop new residential projects and for other corporate expenses. Roughly €55.5 million will be used to fully repay an existing shareholder loan. Instone CEO Kruno Crepulja added that majority of the proceeds will be used to accelerate the business' growth.
Instone is slated to commence trading on the Frankfurt Stock Exchange Feb. 15. Settlement is expected Feb. 19.
Credit Suisse and Deutsche Bank acted as joint global coordinators. Credit Suisse, Deutsche Bank, BNP PARIBAS, Morgan Stanley and UniCredit Bank AG served as joint book runners. Lilja & Co. acted as financial adviser.