AMSTERDAM (Dow Jones)--Dutch insurer Delta Lloyd NV (DL.AE), which is majority-owned by the U.K.'s Aviva PLC (AV.LN), said Tuesday that its initial public offering on the Amsterdam stock exchange was "comfortably oversubscribed," although the EUR16 a share price was at the lower end of the indicated range.
"The IPO was comfortably oversubscribed at the offer price notwithstanding the volatile market backdrop," Delta Lloyd said in a statement.
SNS Securities analyst Maarten Altena said that pricing the issue at the lower end of the indicated EUR15.50-EUR19 range, meant that interest from investors was less than originally expected. The weaker stock market and ING Group NV's (ING) rights issue announced last week have had a negative influence, he added. Altena currently has no rating or target price on Delta Lloyd.
At 0926 GMT, Delta Lloyd shares were trading at EUR15.56.
Delta Lloyd's offering consisted of 63.5 million shares, or 38.3% of issued share capital. The total offering size is around EUR1.02 billion, marking it as one of Europe's largest IPOs so far this year
The lackluster reception for IPOs isn't restricted to the real-estate sector. Chinese wine distributor Silver Base Group Holdings, which raised US$133 million from its IPO, closed Friday at HK$2.08, 42% below its HK$3.45 offer price, and tops the list of post-listing losses.
But analysts said the local market is still flush with cash -- a point that should boost two other mega IPOs set to hit by the end of the year.
Russian aluminum giant United Company Rusal is looking to raise as much as US$3 billion in an IPO, and China Pacific Insurance (Group) Co. is reviving a US$3.5 billion offering it had planned for February last year but scrapped due to volatile market conditions. China Pacific is 17.3%-owned by private-equity firm Carlyle Group LP.
Beijing-based developer Longfor Properties Co. will join the fray Monday by kicking off its IPO, which could raise as much as US$1 billion.
But price will be key. "It all boils down to whether the IPO is attractively priced and whether it has a good story to tell," said Kenny Tang, the head of research at Redford Securities.
"The IPO was comfortably oversubscribed at the offer price notwithstanding the volatile market backdrop," Delta Lloyd said in a statement.
SNS Securities analyst Maarten Altena said that pricing the issue at the lower end of the indicated EUR15.50-EUR19 range, meant that interest from investors was less than originally expected. The weaker stock market and ING Group NV's (ING) rights issue announced last week have had a negative influence, he added. Altena currently has no rating or target price on Delta Lloyd.
At 0926 GMT, Delta Lloyd shares were trading at EUR15.56.
Delta Lloyd's offering consisted of 63.5 million shares, or 38.3% of issued share capital. The total offering size is around EUR1.02 billion, marking it as one of Europe's largest IPOs so far this year
The lackluster reception for IPOs isn't restricted to the real-estate sector. Chinese wine distributor Silver Base Group Holdings, which raised US$133 million from its IPO, closed Friday at HK$2.08, 42% below its HK$3.45 offer price, and tops the list of post-listing losses.
But analysts said the local market is still flush with cash -- a point that should boost two other mega IPOs set to hit by the end of the year.
Russian aluminum giant United Company Rusal is looking to raise as much as US$3 billion in an IPO, and China Pacific Insurance (Group) Co. is reviving a US$3.5 billion offering it had planned for February last year but scrapped due to volatile market conditions. China Pacific is 17.3%-owned by private-equity firm Carlyle Group LP.
Beijing-based developer Longfor Properties Co. will join the fray Monday by kicking off its IPO, which could raise as much as US$1 billion.
But price will be key. "It all boils down to whether the IPO is attractively priced and whether it has a good story to tell," said Kenny Tang, the head of research at Redford Securities.
source of shift www.google.com
No comments:
Post a Comment