pbb Deutsche Pfandbriefbank has launched its flotation, offering stock at €10.75 – €12.75 per share.
The shares are being offered for public subscription in Germany and Luxembourg and through private placements in other jurisdictions including the USA.
The offering will last until 15 July and pbb’s shares, symbol PBB, are expected to commence trading on 16 July on the Frankfurt Stock Exchange.
Hypo Real Estate, pbb’s owner, set the price range with the syndicate banks and Germany’s Federal Agency for Financial Market Stabilisation.
The offer will comprise a maximum of 100,990,956 shares, 75.1% of the share capital, ordinary bearer shares with no-par value. It includes a Greenshoe option, which allows more shares than originally planned to be issued, of 6,589,289 shares, 4.9% of the share capital. pbb could raise up to €1.37bn in the flotation.
The German government will maintain a minimum 20% indirect shareholding for two years through the Financial Markets Stabilisation Fund and Hypo Real Estate, which it owns. The government will not exceed a 24.9% holding.
pbb intends to distribute 40-50% of consolidated net income in accordance with International Financial Reporting Standards.
The bank envisages a pro-rata dividend for the financial year 2015. Dividends will be subject to a corresponding net retained profit in accordance with the German Commercial Code and other regulatory requirements.
Citigroup Global Markets and Deutsche Bank are joint global coordinators and joint bookrunners. JP Morgan Securities, Commerzbank and Joh. Berenberg, Gossler & Co. KG will act as additional bookrunners.
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