German real estate investor Prime Office has announced that it is relaunching its IPO of shares for retail and institutional investors on Wednesday. Some 34.5 million shares are being offered at EUR 6.20 per share - a substantial reduction on the original range of EUR 7-9.50 cited in the lead up to the postponement of the offering last week which was blamed on 'volatile market conditions'.
German real estate investor Prime Office has announced that it is relaunching its IPO of shares for retail and institutional investors on Wednesday. Some 34.5 million shares are being offered at EUR 6.20 per share - a substantial reduction on the original range of EUR 7-9.50 cited in the lead up to the postponement of the offering last week which was blamed on 'volatile market conditions'.
The total volume of the amended offer will be EUR 214 mln as opposed to the EUR 334 mln figure quoted by the company earlier this month when it hoped to list on 24 June.
Prime Office said on Tuesday that it now expects the shares to list on the regulated market segments of Frankfurt and Munich stock exchanges on 1 July. The free float will amount to about 66%. The company has held pre-REIT status since 2007 and the IPO is a necessary step to qualify as a fully fledged real estate investment trust in Germany.
Claus Hermuth, CEO of Prime Office: 'Due to the uncertainties prevailing on the capital markets on 22 June 2011, we had to put our IPO on hold. The positive feedback from investor talks in recent weeks has shown us, however, that there is great investor interest in Prime Office, in our strategy and our prospects for the future. Accordingly, we have decided in favour of continuing the IPO of Prime Office with an adjusted offer.'
Prime Office owns a portfolio consisting of 14 office properties comprising 385,000 m2 in major German cities and conurbations and valued at EUR 970 mln.
