* IPO priced in upper half of original range
* Shares open 15 percent above issue price
* Raised 225 mln pounds selling new and existing shares
(Adds detail, background)
By Brenda Goh
LONDON, Feb 13 Crest Nicholson got off
to a flying start on its return to the stock market on
Wednesday, after the British housebuilder completed a listing
which valued it at 553 million pounds ($866 million).
The 50-year-old firm, taken private by Scottish entrepreneur
Tom Hunter and mortgage lender HBOS at the peak of the market in
2007, priced its shares at 220 pence, the upper half of its
original range. Its stock was trading at 248 pence at 1030 GMT.
The initial public offering (IPO), the biggest in London
this year, was another boost for the market for new listings in
Europe, which started to show signs of life in the final months
of last year as stock markets rallied.
At the start of this month, German real estate group LEG
raised as much as 1.34 billion euros ($1.8
billion)from its Frankfurt listing, while Moscow's stock
exchange was due to complete a $500 million share sale later
Crest's IPO raised 225 million pounds, with 169 million
going to existing shareholders, including Varde Investment
Partners and Deutsche Bank, and another 56 million to
the company to pay down debt and buy more land.
Crest, which builds upmarket homes in the south of England,
was majority-owned by U.S. distressed investment fund Varde
Partners after a series of deals last year.
The IPO's total size could rise 10 percent if an
overallotment option - extra stock that can be sold if investor
demand is high - is exercised. On Tuesday, the company narrowed
its price guidance to 210-220 pence, from 195-230 pence.
Crest, which endured two rounds of debt restructuring after
being hit hard by a housing crash, announced a return to pretax
profit on Jan. 21. Of land holdings for which the company has
permission to build on, over 95 percent is in the south of
England where house prices have stayed relatively strong.
Analysts said Crest still looked discounted compared with
peers which have seen heady increases in their share prices over
the past year.
"It is the new kid on the block. People need to get to know
it and not many people are that familiar with it," said Peel
Hunt analyst Robin Hardy who advised the broker's clients to
subscribe to the IPO. "Eventually the market will accept the
earnings as they are presented and that will give more scope for
the share price to get better," he said.
Barclays and HSBC acted as joint global co-ordinators and
joint bookrunners on the sale.
($1 = 0.6385 pound = 0.7427 euro)
(Additional reporting by Kylie MacLellan; Editing by Dan Lalor)