Finnish real estate company Citycon is raising €48.2 mln by issuing 11.9 million new shares to Finnish and international institutional and other qualified investors.
The shares were sold at €4.05, an 8.7% discount to the market price on 22 February.
The Board of Directors approved the issuance of the shares based on the authorization granted by the Company's Annual General Meeting in March 2023.
This cash injection will be used to pay down debt and strengthen their financial position.
Scott Ball, CEO of Citycon, said: ‘We are very pleased to announce this successful transaction, which improves our credit metrics and further solidifies our investment grade balance sheet. We witnessed great demand for the issue, which was 4 times oversubscribed, and we received great support from our core shareholders G City and Ilmarinen, and also added several new long-term investors to our investor base.’
The shares subscribed for in the Placing represent approximately 6.9% and 6.5% of, respectively, all company shares before and following the Placing. After the shares have been registered with the Finnish Trade Register, the total number of all registered company shares will be 183,894,204.
Citycon agreed to enter into a lock-up agreement, according to which it will, subject to certain customary exceptions and/or waiver by the joint bookrunners, undertake not to issue or sell shares during 90 days after the completion of the Placing.
The new shares will begin trading on the Helsinki Stock Exchange on 27 February.
Deutsche Bank and Skandinaviska Enskilda Banken acted as joint bookrunners. Hannes Snellman Attorneys and Milbank legally advised Citycon, while Roschier, Attorneys acted as the legal adviser to the joint bookrunners.
Citycon manages around €4bn in mixed-use real estate assets in the Nordic region.
