Citadele IPO gets OK, price details revealed

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Recently privatized Citadele bank on Friday released pricing details of its proposed Initial Public Offering (IPO) on the London Stock Exchange after receiving approval to proceed from regulators.

"Following the announcement by Citadele on 15 October 2015 of its intention to proceed with an initial public offering, the Company today announces the expected price range and launch of its IPO once an approved price range prospectus is published today containing full details of the Offer," the bank said.

The Company intends to apply for a dual listing of its ordinary shares on the NASDAQ OMX Riga Stock Exchange”, along with global depositary receipts (GDRs) on the standard segment of the London Stock Exchange, with one GDR representing an interest in 6 Shares

The price range for the Offer has been set at between €1.15 and €2.00 per Share and between $7.797 and $13.56 per GDR. 

At the mid-point of the price range this implies a market capitalisation of approximately €362mn.

That makes the €75m asking price for the bank look like a bargain.

The new investment would be used to "pursue future growth in Latvia and the other Baltics" the bank said.

If succesfully completed, the listing would be the first IPO in Latvia since 2004 another important signal that the country has recovered from economic crisis.

Citadele would be the only Latvian-based company listed on the London Stock Exchange.

Final pricing is expected to be announced "on or around 4 November 2015, with the commencement of unconditional dealing in Shares on the Riga Stock Exchange and GDRs on the London Stock Exchange expected on 10 November 2015," the bank said in a market statement.

Having only secured control of Citadele from the Latvian state in April, the US-led investors who bought it have wasted little time in heading for the markets. 

Timothy Collins, Chairman of the Supervisory Board, commented on the float: “Citadele’s IPO comes at a time of sustained economic growth across the Baltics. The Company enjoys the full support of its long-term shareholders who are committed to pursuing the bank’s future growth in Latvia, Lithuania and Estonia; providing more banking products and services to households and medium-sized businesses.”

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