Testa Residencial said it has approved plans to go public later this year in a move aimed at financing an ambitious acquisition programme.
Testa Residencial plans to issue 9.44 million new shares at a price of €13.86 in an offer for subscription dedicated to institutional investors.
Details of the offering, which is expected to raise around €130 mln, may vary depending upon investors' interest. The offer for subscription will be followed by a public offering whose details are yet to be determined.
The listing is in line with the company's strategy to grow through acquisitions. The fund has just announced plans to invest some €500 mln to acquire new residential units in Spain's largest cities.
Testa was created two years ago through the spin-off of Merlin's housing portolio following the acquisition of Testa's and Metrovacesa's income-producing assets. It currently owns nearly 11,000 residential units valued at €2.3 bn and is owned by banks Santander and BBVA alongside Acciona and Merlín.
It posted a net result of €70 mln last year while its EBITDA came to just over €25 mln.
It is the latest IPO move by a Spanish residential developer following the listing of Metrovacesa earlier this year and the IPO by Azora planned for mid May.
