Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Eircom prices IPO at 1.55 euros per share

Options
  • 19-03-2004 11:04am
    #1
    dod
    Closed Accounts Posts: 801 ✭✭✭


    http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=4603643
    Eircom prices IPO at 1.55 euros per share

    DUBLIN, March 19 (Reuters) - Ireland's top telecoms carrier Eircom confirmed on Friday it had priced its upcoming initial public offering of shares at 1.55 euros ($1.90) apiece, giving it a market value of around 1.15 billion euros.

    The price was towards the lower end of the 1.48-1.75 euro indicative range announced earlier this month.

    The former state monopoly, returning to the stock market on Friday after being taken private in 2001, said around 467 million shares were being made available, including a primary offer of 138.7 million new shares to raise 215 million euros.

    The company will make a secondary offer of 328.2 million shares and raise an additional 85 million euros from an employee share ownership trust (ESOT) rights issue, bringing its gross proceeds to 300 million euros, Eircom said.

    New investors will own about 70 percent of the company if an over allotment of 10 percent of the global issue is exercised.

    "We are pleased the offer has been well received in difficult market conditions," it said in a statement.

    "We believe we are well-placed to continue building on our performance to create further value for shareholders and customers," it added.

    The controlling Valentia consortium, which includes Providence Equity Partners, Soros Private Equity, and Irish media magnate Tony O'Reilly, is selling the bulk of its 70 percent holding. The remaining stake is owned by the ESOT.

    The deal is the largest IPO in Europe so far this year, with Eircom the first telecoms firm to list in Europe since Orange went public three years ago -- although Belgium's Belgacom is set to raise up to four billion euros in its own IPO, due to price this weekend.

    Conditional trading in Eircom, which has around 80 percent of Ireland's fixed-line market, will begin in Dublin and London at 1300 GMT on Friday, with unconditional dealing set for 0800 GMT on March 24.

    Brokers Citigroup, Goldman Sachs, Morgan Stanley and Deutsche Bank are marketing the public offering.


Advertisement