RPT-Czech VGP sets IPO price at 15.25 euros

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Czech real estate developer VGP priced its shares in an initial public offering at 15.25 euros, at the bottom of its indicative range, the company said on Thursday.

VGP, whose shares are set to trade on Euronext Brussels and in Prague on Friday, said it would raise the intended 50 million euros ($72.8 million) in the IPO, plus up to 4.6 million euros if an over-allotment option is exercised.

The issue values the company at 280 million euros before the over-allotment option, VGP said.

The company scaled back its initial public offering (IPO) from the 150 million euros initially planned.

With certain parties related to the founders subscribing for 41.5 million euros worth of the stock, the remaining portion on offer was small.

"The base offering was fully subscribed by in total 731 investors, despite the difficult market climate that has caused other ongoing IPO processes to be pulled or revised in terms of structure/pricing," VGP said in a statement.

VGP had set an indicative price range of 15.25 to 16.75 euros.

The company will issue 3.28 million new shares and up to 0.3 million shares in the overallotment.

VGP and global coordinator and bookrunner KBC Securities said the final price would be communicated later on Thursday.

The real estate group, whose tenants include Ikea, Siemens and TNT, said it planned to use the IPO proceeds to invest in land in the Czech Republic, Germany, Slovakia, Hungary, Romania and the Baltic States and to finish existing construction work.

Belgium's KBC, ING and KBC's Czech unit Patria Finance are arranging the IPO. (Reporting by Philip Blenkinsop and Jan Lopatka; Editing by David Holmes) ($1=.6870 Euro)

Keywords: VGP IPO/

[BRUSSELS/Reuters/Finance.cz]