* Buwog valued at $1.88 bln on first day of trading
* Market price represents 17 pct discount to NAV
* Immofinanz shares fall 15.5 pct
(Adds CEO comment, closing price, background)
By Kathrin Jones and Georgina Prodhan
FRANKFURT/VIENNA, April 28 Shares in property
group Buwog rose in their market debut on Monday,
valuing the company spun off from Immofinanz at about
1.38 billion euros ($1.9 billion).
Trading of the shares in the first new public listing for
both Frankfurt and Vienna this year started at 13 euros apiece,
and the price rose to 13.78 euros in Frankfurt and 13.93 euros
in Vienna by market close.
Earlier this year, shareholders in Austria's Immofinanz
approved a spin-off of an initial 51 percent of Buwog to
separate Buwog's portfolio of German and Austrian homes from
Immofinanz' eastern European commercial assets.
The shareholders received one Buwog share for every 20
Immofinanz shares they hold.
"Direct access to the capital markets opens great
opportunities for our company and allows us to better exploit
the growth potential in both our target markets, Germany and
Austria," Buwog Chief Executive Daniel Riedl said in Frankfurt.
The closing price represented a roughly 17 percent discount
to Buwog's net asset value, broadly in line with German peer
Gagfah but cheaper than Germany's Deutsche Wohnen
or LEG Immobilien.
Global initial public offerings almost doubled in value in
the first quarter of 2014 with Europe leading the way thanks to
a nascent economic recovery, but Germany has seen little
activity with only two flotations announced.
Shares in Immofinanz, whose remaining portfolio is weighted
towards Russian retail, fell 15.5 percent in Vienna to 2.64
euros, wiping around 700 million off the value of the company.
Analysts said the drop was probably driven by rising
Russia-Ukraine tensions after the United States froze assets and
imposed visa bans on seven powerful Russians close to President
Vladimir Putin and sanctioned 17 Russian firms.
The company still holds 49 percent of Buwog, worth about 675
million euros at Monday's close. It aims to reduce its stake.
($1 = 0.7223 Euros)
(Reporting by Kathrin Jones and Georgina Prodhan; Writing by
Arno Schuetze and Georgina Prodhan; Editing by Erica Billingham)