Germany's Ado revives €400m IPO plans as markets settle

German residential property firm Ado Properties has revived plans for an initial public offering thanks to 'stabilised market conditions'.

Ado Properties, a €1.2 bn residential landlord owned by Israëli-listed Ado Group, was due to go public at end-June, but the company cancelled the IPO amid the financial turmoil surrounding the Greek debt crisis

In a statement on Monday, Ado said it has now set the price range for its shares at between €20 and €25 a piece and added that it expects the first day of trading on the Frankfurt Stock Exchange to be July 23.

An additional offer period for institutional investors consisting of an accelerated book-building will start on 20 July 2015 and is scheduled to end on 22 July.

The company, which focuses on residential assets in Berlin, will place around 21 million shares and it expects to raise at least €400 mln from the IPO, roughly half of which it intends to use to fund new acquisitions.

'We are very excited to re-launch the IPO process on the back of stabilized market conditions as well as the positive feedback from investors, both international and domestic. We are in an excellent position to benefit from future growth opportunities in the strong Berlin residential market using the proceeds of the offering in line with our clear strategy to create value,' said Rabin Savion, CEO of Ado Properties.

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

The company owns about 13,700 homes and 700 commercial properties in the German capital.