RPT-Czech VGP cuts IPO to 50 mln euros due to mkt turmoil

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Czech real estate developer VGP has scaled back its initial public offering (IPO) to about one third of the earlier indicated quantity of shares because of turbulent stock markets, the company said on Monday.

The company said it was looking to raise as much as 57.5 million euros ($73.2 million) through the offering of new stock, much less than the initial plan to place up to 150 million in new and existing shares.

"The turbulent markets led us to re-evaluate the situation ... We lowered the transaction from 150 million," Chief Executive Officer Jan Van Geet told reporters.

Shares in Prague-listed developers ECM and Orco were both down by about 5 percent.

In a statement, VGP said the price range for the offering of 50 million euros worth of new shares would be announced on Tuesday. The IPO would launch on Wednesday and was expected to close on Dec. 5.

The firm said it was scheduled to debut on the Prague and Brussels bourses on Dec. 7, confirming the date given to Reuters by a source close to the deal earlier in the day.

The company said it reserved the right to place additional new stock representing up to 15 percent of the offer.

Belgium's KBC, ING and KBC's Czech unit Patria Finance are arranging the IPO.

Van Geet said he expected current shareholders and related parties to participate and show strong interest in the IPO.

Existing shareholders will have a lock-up period of one year and will retain a sizeable majority in the company, Patria said.

VGP is a developer of commercial and logistic buildings in the Czech Republic and elsewhere in central and eastern Europe.

(Reporting by Jan Lopatka; Writing by Marek Petrus; Editing by Rory Channing and David Holmes)

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Keywords: VGP IPO/OFFER

[PRAGUE/Reuters/Finance.cz]