Intesa Sanpaolo postpones Immit IPO

Italian bank Intesa Sanpaolo has postponed the Initial Public Offering of its real estate investment trust Immit due to the turbulence in the financial markets. Immit had hoped to raise up to EUR 1bn from the IPO on Milan's Stock Exchange, but last week announced an extension to the offering period in a sign of slack investor demand. In a statement released late on Thursday, Immit announced the IPO has been suspended and will be resumed as soon as there is a 'more stable situation in the financial markets.'

Intesa Sanpaolo-owned Immit was offering up to 51% of its capital, or about 148 million shares, in an initial public offering on the MTA segment of Milan's stock exchange. The company had set a price range of EUR 2.90 - EUR 3.60 per share, which would give Immit a market capitalisation of between EUR 844mln - EUR 1bn. The listing was to be the first step in Immit obtaining the status of a real estate investment trust, known as a SIIQ in Italy.

The offering was being coordinated and led by Banca IMI and Lehman Brothers. Immit has an open market value of EUR 1.3bn, with offices accounting for 71% of its portfolio and bank branches for 29%.

The Italian tax-efficient SIIQ was introduced this year and is similar in structure to REITs in the UK and Germany, the FBI in the Netherlands and SIIC in France. SIIQs will enjoy breaks on corporate and regional taxes (IRAS and IREP), in return for the distribution of at least 85% of profit in dividends. In April, Bologna-based IGD became the first Italy real estate group to convert to SIIQ status.