Success for Norwegian Property - transaction oversubscribed sixfold
(Oslo, 14 November 2006)
Norwegian Property ASA has been received with great interest among both domestic and foreign investors. When the deadline for applying for shares in the initial public offering passed yesterday afternoon, shares totalling roughly NOK 8.6 billion had been ordered. A number of the world's most reputed property investors have applied for shares, along with more than 900 private individuals in Norway.
The indicated price interval for the share issue and the secondary sale was set at NOK 50-55 per share. The final price has been fixed at NOK 53.50 per share, and the total transaction of 27 million shares (including an over-allotment of about 2.5 million shares) was oversubscribed sixfold at this price.
"Interest in Norwegian Property has exceeded our most optimistic expectations," comments CEO Petter Jansen. "We're proud that some of the world's leading property investors have become our shareholders."
"This confirms that our strategy and portfolio are regarded as attractive. The confidence shown in us is important for our continued development into Norway's largest property company."
A total of 27 million shares have been allotted at a value of roughly NOK 1,445 million. This allotment includes some 2.5 million existing shares which SEB Enskilda ASA and Pareto Securities ASA, as global coordinators, have chosen to over-allot and two million sold on behalf of Næringsbygg II Holding AS/Näringsfastigheter Holding II Röd AB (publ).
The coordinators will issue a separate stock market announcement relating to the over-allotment and the exercise of stabilisation activities.
New equity with a gross value of NOK 1,206 million has been raised by the share issue. The price of NOK 53.50 per share corresponds to a market value for the company of roughly NOK 5,139 million after the share issue (before the possible exercise of the green shoe option). The latest traded price before the IPO transaction was NOK 53.25 per share.
About 92 per cent of the shares were allotted to institutional investors, and roughly eight per cent through the offer to private individuals. International investors were allotted some 77 per cent of the shares.
After the issue of 22,545,455 shares as part of the transaction, the company has 96,058,384 outstanding shares and more than 1 300 shareholders.
Information on share allotments will be issued to shareholders on 14 November 2006, and delivery of the shares is expected to take place on 17 November. Delivery is conditional on correct payment as specified in the IPO prospectus.
Investors with access to investor services through their registrar in the Norwegian Central Securities Depository (VPS) can check their allotment of shares from 14 November. Investors who wish to know more about the allotment can contact SEB Enskilda, Pareto Securities or DnB NOR Markets.
Trading in Norwegian Property shares on the Oslo Stock Exchange is expected to commence on Wednesday 15 November under the ticker code NPRO.
About Norwegian Property
Norwegian Property is a recently-established property investment company which seeks to give its shareholders an attractive return and investors access to listed and liquid shares in a property company.
Its clear investment strategy is focused exclusively on centrally-located commercial properties in Norway's largest cities.
The company's portfolio comprises 41 high-standard commercial properties in attractive locations, acquired at a total cost of around NOK 14.6 billion.
Covering about 590,000 square metres in all, the properties will yield a leasehold rental income of roughly NOK 882 million in 2006. Virtually all the area is leased, and the average weighted remaining terms of these leases was 7.8 years at 30 September.
The properties have been acquired at an average implicit net yield after tax of roughly six per cent.
Further information from
Petter Jansen, president and CEO, Norwegian Property ASA, tel: +47 90 09 87 28
Svein Hov Skjelle, chief financial officer, Norwegian Property ASA, tel: +47 93 05 55 66
(This announcement must not be distributed to or in the USA or to US-based news services.)