LONDON (dpa-AFX) - UK-based homebuilder Countryside Properties said Friday that its initial public offering values the company at 1.013 billion pounds, or about $1.46 billion.
The company priced its 135 million shares in the IPO on the London Stock Exchange at 225 pence per share, at the low end of its previously forecast range of 225 pence to 275 pence per share. The IPO represents 30 percent of the company's outstanding shares.
The IPO marks Countryside's return to the equity markets, with the company being previously listed in London between 1972 and 2005. In 2013, funds advised by U.S.-based private equity firm Oaktree Capital Management L.P. acquired a majority stake in the company from Lloyds Banking Group plc (LYG, LLOY.L).
Shares of Countryside rose almost 3 percent in conditional trading on the London Stock Exchange on Friday. Unconditional trading in the shares is expected to begin on Wednesday, 17 February.
Ian Sutcliffe, Group Chief Executive Officer of Countryside, said, 'We have been extremely pleased with the investor response to our offer, in what has been a challenging period for the wider markets. Our differentiated business model, and the future growth opportunity it represents, has been well understood by investors.'
Countryside will receive net proceeds of about 114 million pounds from the IPO, of which it will use about 64 million pounds to pay down debt, while about 50 million pounds will be used to accelerate growth in the development of existing sites.
The selling shareholders - OCM Luxembourg Coppice Topco S.à r.l., an entity controlled by Oaktree, and certain other shareholders will receive gross proceeds of about 174 million pounds from the IPO.
Assuming no exercise of the over allotment option, Oaktree will own 60.6 percent of the company's outstanding shares, while Countryside's directors and senior management will hold about 7.6 percent of the issued share capital.
Founded in 1958, Brentwood, Essex-based Countryside develops residential homes and mixed-use communities, primarily operating in the London area and in the southeast, the east and the northwest of England.
The company reported revenue of 615.8 million pounds in its 2015 fiscal year, up 16 percent from the prior year. Operating profit surged 93 percent from the prior year to 91.2 million pounds.
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