Spain's Realia has raised EUR 783 mln in an initial public offering that missed the company's goal of EUR 7.9 to EUR 9.7 per share because of the slowing property market in the country. Realia, the first Spanish developer to seek a listing this year, sold its shares at a price of EUR 6.50 each, the Madrid-based company said on Tuesday. Fomento de Construcciones & Contratas (FCC) and Caja Madrid, which jointly own the company, had aimed to sell the shares for EUR 7.9 to EUR 9.7 a share.
Spain's Realia has raised EUR 783 mln in an initial public offering that missed the company's goal of EUR 7.9 to EUR 9.7 per share because of the slowing property market in the country. Realia, the first Spanish developer to seek a listing this year, sold its shares at a price of EUR 6.50 each, the Madrid-based company said on Tuesday. Fomento de Construcciones & Contratas (FCC) and Caja Madrid, which jointly own the company, had aimed to sell the shares for EUR 7.9 to EUR 9.7 a share.
The offering values Realia at about EUR 1.8 bn, down EUR 400 mln from the potential capitalisation outlined in the first IPO notice. Realia is the first property company to sell shares to the public after rising borrowing costs and a drop in demand for Spanish real estate led to a share slump in Spain's stocks last March.
Realia, currently active in Spain, France, Portugal and Poland, will look at acquisitions in other parts of Europe once the IPO is completed. The commercial property company is placing about 44% of its share capital on the market, while the two majority shareholders have agreed to retain 51% of the company for the next five years. Foreign investors are being offered about 52% of the remaining shares, local funds 16% and retail investors 32%. JPMorgan and Caja Madrid are acting as global coordinators for the listing.
