February 2, 2018 / 10:57 AM / in 6 months

UPDATE 2-Instone eyes valuation of almost 950 mln euros in Frankfurt listing

* Sets Frankfurt stock market listing for Feb. 15

* To sell 7 mln new shares, 13.35 mln existing shares

* Sets placement price at 21.50-25.50 euros per share

* To have market cap of 795-943 mln euros (Adds free float, plans for proceeds, CEO comment)

FRANKFURT, Feb 2 (Reuters) - German residential property developer Instone Real Estate Group has set its flotation on the Frankfurt stock exchange for February 15 and said it could reach a market value of almost 950 million euros ($1.2 billion).

The placement will be Germany’s second stock market listing of 2018, which is expected to be a blockbuster year for initial public offerings (IPOs). Drugmaker Dermapharm plans to list on February 9.

The placement will comprise 7 million new shares from a capital increase and 13.35 million shares from fund holdings by ActivumSG Capital Management at a price of 21.50 to 25.50 euros each, the company said on Friday.

Up to 3.05 million shares from ActivumSG have also been earmarked for over-allotments.

That will give the company a market capitalisation of between 795 million euros and 943 million euros, Instone said.

Some 55 percent of shares in Instone will be freely traded following the listing, a spokesman said, rising to 63 percent if the over-allotment option is fully used.

Instone said it plans to use around 55 million euros of the net proceeds from the placement of new shares to repay a shareholder loan and the remainder will go toward the acquisition and development of new residential projects.

“With expected around 100 million euros in net proceeds at the mid-point of the price range, we will be able to acquire new land plots and work towards reaching our target sales volume of 900 million euros to 1 billion euros by 2021,” Instone Chief Executive Kruno Crepulja said in a statement.

Deutsche Bank and Credit Suisse are organising the flotation with the help of Morgan Stanley, BNP Paribas and Unicredit.

Instone was formed by a merger of peer GRK and Formart, part of German builder Hochtief, which specialist real estate investor Activum bought in 2014 for about 300 million euros. ($1 = 0.7996 euros) (Reporting by Maria Sheahan; Editing by Elaine Hardcastle)

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