Public Property Invest (PPI), a Norwegian commercial property firm 45%-owned by troubled property group SBB, is launching an initial public offering on the Oslo stock exchange in a bid to raise up to NOK 1.8 bn (roughly €150 mln).
PPI plans to raise gross proceeds of no less than NOK 1.5 bn and up to NOK 1.8 bn by issuing up to 122 million new shares at a price between NOK 14.5 and NOK 21 per share.
In tandem with the public listing, PPI has agreed to acquire a portfolio of 13 properties from its cash-strapped parent firm SBB which will be compensated with the issue of around 32 million PPI shares. The properties being purchased have annual rental income of NOK 99 mln.
Following the operation, SBB is expected to hold approximately 31.8% of the shares in PPI, with the company having a free float of 68.2%.
Completion of the operation is planned for April 25 and is conditional upon the board of directors of the Oslo Stock Exchange approving the application of listing of the company's shares.
'The contemplated IPO represents an important milestone for PPI in our ambition to strengthen the balance sheet and become the leading consolidator in the Norwegian market. As a public company, PPI will improve its visibility, which gives better access to the capital markets and to a broader base of Nordic and international shareholders,' commented Ilija Batljan, interim CEO PPI.
