Ado debuts on stock exchange, IPO priced at bottom of range

German residential property firm Ado Properties has set the share offer price of its Initial Public Offering at €20 a share, at the lower end of its €20-€25 price range.

Ado Properties, a €1.2 bn residential landlord owned by Israëli-listed Ado Group, revived plans to go public last week, after having cancelled plans for an IPO in June amid the financial turmoil surrounding the Greek debt crisis

A total of nearly 23 million shares were offered to institutional investors by way of an accelerated bookbuilding. At the set offer price, Ado Properties has a market capitalization of €700 mln.

'We are particularly happy with the demand for Ado Properties’ shares and are looking forward to the first trading day. The positive responses that we have received from both European and US investors confirm the attractiveness of our business model,' said Rabin Savion, CEO of Ado Properties.

Shlomo Zohar, executive vice chairman of Ado Properties, added: 'We believe that Ado Properties is very well positioned to capture the opportunities in the strong Berlin residential market. The IPO will help us to continue on our growth path.'

The total offer volume amounts to €456.5 mln assuming full exercise of the over-allotment option or around €415 mln without the over-allotment option. The company expects to receive gross proceeds of €200 mln from the issuance of the new shares.

After the completion of the IPO, Israel's Ado Group will hold a stake of 35% assuming full exercise of the over-allotment option or 41% without exercise of the over-allotment option. The resulting initial free float will amount to 65% of the company’s post-IPO share capital.

Ado's shares were admitted to start trading on the regulated market (Prime Standard) of the Frankfurt Stock Exchange on 23 July 2015.

Kempen & Co and UBS Investment Bank acted as joint global coordinators and joint bookrunners. Barclays and Commerzbank were mandated as additional joint bookrunners. Arbireo Capital is acting as process manager and sole financial adviser in the IPO.