The Slovenian State Holding Company (SDH) has announced how many shares of NLB have been sold and at what price.
The price per share of NLB was set at 51.50 euros in the IPO procedure, ie, at the lower limit of the price range, between 51.50 and 66 euros. In the current procedure, the state sold 59.1% of NLB shares, thus earning only under 609 million euros. Taking into account the possibility of special stabilization, the stock could rise to 65%.
The price achieved in the initial public offering of IPO shares means that NLB's market value or market value at the beginning of the list of shares on the Ljubljana and London Stock Exchange reached € 1.03 billion on November 14, NLB and SDH reported. By comparison, the book value of equity at the end of June was 1.51 billion euros.
The Slovenian company Holding Company (SDH) has also implemented the option of unnecessary allocation and has made 1,181,819 additional NLB shares available. If the option of over-allocation is fully implemented, revenues for the country will increase to 669.5 million euros, which will amount to 65% of the share capital of NLB.
In the case of redundant allocation, this is a stabilization mechanism. As it sounds, it was required by large international investors interested in buying shares in the bank. It is a fact that the stabilization organizations Citigroup and Wood & Company will keep some of the shares, and within 30 days of listing the shares on the stock exchange, they can end deals in order to stabilize the price.
The shares are expected to start trading in the Ljubljana and London stock exchanges on November 14, when the sale of the shares is planned. Until then, such investors have time to pay their shares.
Glavina: A positive response made us very happy
"We are very proud that the offer of NLB shares has ended today, and today's announcement is an important milestone in the process of privatization and the fulfillment of our commitments to the European Commission." The positive response and approval of institutional investors around the world has made us happy and we expect to register new shareholders into the book of the shareholder,
President of SDH Council wrote
The first man in the NLB
Lying in Rudnyak
However, he expressed satisfaction that the process was successful.
"We look forward to the opportunities and challenges that the company will bring to the stock exchange, and this time we would like to thank all stakeholders for this demanding process of fair and active cooperation"
He put it.
The state will have to sell the balance by the end of 2019
As part of this process, the state sold at least 50 percent plus one share to 75 percent less than one NLB after a commitment from the European Commission in return for government aid by the end of 2013. The state-owned holding this time will have to be sold by the end of next year. Since the bank shares will be quoted on the stock exchange, these procedures will be much easier.
However, until the sale commitment is fulfilled, the Bank will have to implement at least part of the balance and / or compensatory means. NLB will close additional banking subsidiaries in the local market, 14 of which intend to close at the beginning of December. Since the sale of 75% of the single bonus will not be carried out by the end of the year, it will also have to initiate the sale of its holdings in the subsidiary NLB Vita.
NLB changed his mind because of protests
NLB will return the difference to retail investors
In the offering, most of the shares were offered for redemption to institutional investors, and a smaller fraction to retail investors in Slovenia, natural or legal persons who do not invest well. They can enter at least 10 shares and pay them at the price of 66 euros. NLB will continue to notify when NLB will return the difference.
The authorized price of the IPO, organized by Deutsche Bank and JPMorgan Morgan as its lead coordinator, represents 68% of NLB's book value, which reached € 75.40 in mid-year. The range itself is not set high, because the market situation is not the best at this point.
Part of the range of prices offered is also the value of the Global Asset Asset Value (GDR) values. This is a security that can be transferred by a bank and serves as an alternative financial instrument for shares of a foreign company traded abroad, each of which consists of five GDRs.
Last year was not satisfied with the range
The state sold the bank last year, but it was stopped by the government as the SDH assembly at a point of agreement on the price range, due to dissatisfaction with the then distribution between 55 and 71 euros (according to the book value of 65.50 euros) and the risks associated with proceedings in Croatia due to the deposits In foreign currency were transferred to the former LB. The decision was rejected to the government by the Supervisory Board of SDH.
Last year's figures and sales this year are not directly similar. The last published value for the book value is at the end of June, while in mid-October NLB paid 270.6 million euros of dividends for the past year. The figure includes 189.1 million euros of net profit and net profit last year.
For 2015, 2016 and 2017, NLB paid € 378.2 million in dividends. At the end of 2013, its aid to the bank amounted to € 1.56 billion.