Germany's firm Domicil seeks to raise €150m in IPO

German property company Domicil Real Estate said on Wednesday that it is planning to raise €150 mln at an initial public offering on the Prime Standard segment of the Frankfurt stock exchange.

Domicil, based in Munich, has won the backing of insurance companies Signal Iduna and Die Bayrische, who have between them agreed to invest €15 mln in the offering.

The company, which focuses on residential properties, will use the proceeds to fund its growth.

'In recent years we have continually increased the revenues and earnings of the company. Through an initial public offering we wish to facilitate the further growth of Domicil and ensure we have greater financial flexibility and access to more favourable financing,' said Khaled Kaissar, the founder and chief executive officer of Domicil.

'In recent years, we have experienced solid organic growth and in 2018 we were able to write the most successful chapter in our company’s history to date. Equity capital is the limiting factor holding back our further growth,' added Matthias Moser, the chairman of the supervisory board of Domicil.

Domicil posted revenues of €366.6 mln in 2018, thereof €346.0 mln from the sale of real estate. In 2018 Domicil posted earnings before interest and taxes (EBIT) of €29.9 mln and a net annual profit of €12.2 mln.

The offering is to be concluded by the end of this year subject to market conditions, the company said.

Citigroup is acting as sole global coordinator and joint bookrunner on the deal, with Baader Bank as joint bookrunner.

Separately, the company announced the appointment of Eckhard Schultz as its new Chief Financial Officer (CFO). Schultz will join in January 2020 from LEG Immobilienwhere he has been Chief Financial Officer and Deputy Chairman since 2013.

The appointment completes the board of management alongside Chief Executive Officer (CEO) Khaled Kaissar, Chief Sales Officer (CSO) Daniel Preis, and Chief Investment Officer (CIO) Andre Schmöller.


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