Velero Immobilien, a provider of property management services in the residential real estate market in Germany, said it is postponing its initial public offering as a result of difficult market conditions.
In a statement, the firm said that it ‘continues to aim for a stock exchange listing in an improved market environment’.
PropertyEU reported in early October that the company was planning to raise up to €500 mln in an IPO on the Frankfurt stock exchange.
Ahead of the listing, the company said it would issue new shares from a capital increase offered to institutional investors in the form of a private placement. It was looking to place at least 16.7 million new shares at €30 apiece, with selected investors including Dutch pension fund PGGM. The offer period ended earlier this week.
The company was planning to use the net proceeds to acquire three portfolios comprising a total of 10,189 residential units mainly located in mid-sized cities in North-Rhine Westphalia and East Germany.
