Kojamo, Finland's largest private residential real estate owner, has announced plans to list on the Helsinki stock exchange in an initial public offering valued at over €750 mln.
In a statement on Friday, the company said that it has set the preliminary price range of the offering at a minimum of €8.50 and a maximum of €10.00 per share.
The listing is expected to give Kojamo - the owner of a €5 bn portfolio of over 35,000 units – a market capitalisation of roughly €2-2.5 bn. The company also aims to raise gross proceeds of €150 mln by offering for subscription new shares, the number of which will be determined based on the final price per share.
Shareholders including pension insurance groups Ilmarinen and Varma as well as a number of trade unions (Finnish Industrial Union, Trade Union for the Public and Welfare Sectors, Finnish Construction Trade Union, Service Union United PAM, Trade Union PRO and Trade Union of Education in Finland) will offer for purchase a minimum of 39 million and a maximum of 54 million existing shares in the company. The offer shares represent a maximum of 33% of the company's total shares.
The value of the offering based on the mid-point of the preliminary price range is expected to be around €748 mln, the company said.
'The planned listing supports the realization of our growth strategy and increases Kojamo's strategic flexibility,' said CEO Jani Nieminen. 'Kojamo's vision is to be a frontrunner in the rental housing business and the customer's number-one choice. Our strategy is to offer the best customer experience and increase the value and size of our investment properties in Finnish growth centres. We aim to generate shareholder value by increasing our real estate portfolio.'
The company aims to own 38,000 apartments valued at €6 bn by the end of 2012, added Nieminen.
The subscription period will commence on June 4, and will end on June 14, with trading expected to commence on June 19.