* Price range guidance of 43-45 euros a share - sources
* Books covered at 44 euros a share - sources
* LEG owners to raise 1.31 to 1.37 billion euros in IPO
FRANKFURT, Jan 29 German real estate group LEG
Immobilien has narrowed the indicative price range for
its planned listing on the Frankfurt stock exchange, three
people close to the process told Reuters.
In what would be Germany's second-biggest initial public
offering (IPO) in five years after Telefonica Deutschland
, LEG told prospective investors that its shares would
likely sell within a price range of 43-45 euros ($57.88-60.57) a
share, three financial sources said on Tuesday.
LEG's majority owner Whitehall, a Goldman Sachs
investment fund, and 11 percent-owner Perry Capital are
therefore set to raise 1.31 billion to 1.37 billion euros from
selling 57.5 percent of the share capital.
The IPO of Telefonica Deutschland generated proceeds of 1.45
"The books (of the LEG IPO) are covered at 44 euros a
share," one of the people said.
"Books are covered including greenshoe," another source
said, referring to a proportion of the stock which the
shareholders can choose to sell if investor demand is high.
LEG, which initially suggested a 41-47 euro range, declined
to comment. It is due to decide on a final price on Thursday,
with trading to start on Friday.
Europe's IPO market, which has been struggling during the
region's long debt crisis and sluggish economic growth, started
to show signs of life in the final months of 2012 as confidence
While the recovery remains fragile, a lack of IPO activity
through much of last year has left a backlog of deals that could
come to market in 2013, bankers said.
Ebullient stock markets have already this month encouraged
several firms in Europe, including Russian trading venue the
Moscow Exchange and British housebuilder Crest Nicholson, to
launch plans to float.
LEG plans to buy 10,000 apartments in Germany over the next
two years, betting on a market increasingly sought out for its
However, LEG will not be issuing any new shares on its
listing, so will not reap any proceeds from its debut on the