Buwog debuts on Frankfurt stock exchange, valued at €1.3b

Buwog, the residential property firm being spun off by listed Austrian group Immofinanz, started trading on the Frankfurt and Vienna stock exchanges on Monday.

In a statement, Buwog said its shares opened at €13.00 each, giving the company a market capitalisation of €1.3 bn.

'Today’s initial listing opens a new chapter in Buwog’s nearly 60-year history,' commented Daniel Riedl, CEO of Buwog. 'This direct access to the capital market will create substantial opportunities for our company’s future development and allow us to make even better use of the growth potential in our two core markets Germany and Austria.'

Buwog's IPO is the largest new listing in the Prime Standard segment of the Frankfurt stock exchange so far this year. The listing was preceded by the company‘s spin-off from Immofinanz, with the parent group's shareholders receiving one Buwog share per every 20 Immofinanz shares.

At present, Buwog is 49%-owned by Immofinanz while the remaining 51% is free float. Immofinanz plans to further reduce its stake in the residential landlord in the future.