ZURICH, May 6 (Reuters) - Swiss property redevelopment company HIAG Immobilien IPO-HIAG.S plans to raise as much as 140 million Swiss francs ($159.5 million) in an initial public offering (IPO) this month to reduce debt and finance ongoing projects, it said on Tuesday.
The latest in a string of Swiss offerings, illustrating returning investor confidence in stock market listings, priced 1.7 million new shares in the Basel-based company at 72 to 86 francs per share. Three anchor shareholders also selling 847,500 existing shares, bringing the HIAG’s free float to 31.8 percent.
Shares in property sector peers, including Swiss Prime Site , Mobimo Holding and Allreal Holding, trade at an average of around 17 times estimated forward earnings, according to Thomson Reuters data.
Founded in 2008, HIAG Immobilien redevelops former industrial and commercial sites to create new residential and office properties. At the end of 2013 its portfolio was valued at 1.065 billion Swiss francs ($1.21 billion), generating annualised property income of 46.6 million francs.
Bookbuilding begins on Tuesday and is expected to complete on May 15, HIAG said. The new shares will begin trading on the SIX Swiss Exchange on May 16.
Credit Suisse is the sole bookrunner and Bank Vontobel is acting as co-lead manager.
The three anchor shareholders also granted the syndicate banks an overallotment of up to 255,000 shares, which can be exercised within 30 calendar days after the first day’s trading.
HIAG’s offering follows April listings by Swiss online travel company Bravofly Rumbo Group and lender Thurgauer Kantonalbank, raising 105 million francs and 160 million francs respectively. ($1 = 0.8778 Swiss Francs)
Reporting by Joshua Franklin; Editing by David Goodman