February 15, 2018 / 9:15 AM / 10 months ago

UPDATE 1-Instone Real Estate slips in Frankfurt debut

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FRANKFURT, Feb 15 (Reuters) - Shares in Germany’s Instone Real Estate Group slipped below the offer price, adding to signs of gloom for what is expected to be a blockbuster year for flotations.

The stock opened at the issue price of 21.50 euros in their debut on the Frankfurt stock exchange on Thursday, but then lost 1.1 percent versus a 0.7 percent rise in the broader German market.

Instone’s market debut is the second listing in Germany this year following drugmaker Dermapharm, which fell sharply on its first day of trading last week following a slump in U.S. and Asian markets triggered by fears of higher U.S. interest rates.

Instone stock had been offered to institutional investors at a price range of 21.50 euros to 25.50 euros but was priced at the bottom of the range on Tuesday, and the volume of the offering was reduced.

Instone placed 19.9 million shares, including a greenshoe option, of which 7 million were new shares and the rest from fund holdings by ActivumSG Capital Management. It had initially said investors would be offered up to a total 23.4 million shares.

Up to 54 percent of Instone shares will be freely traded following the flotation, which raises around 428 million euros and gives the company a market capitalisation of about 795 million euros.

Other flotations expected in the coming months include Siemens’s Healthineers business, which sources have said is likely to come in March in what may be Germany’s biggest IPO this year. Brake systems maker Knorr-Bremse and Deutsche Bank’s asset management arm DWS are seen as hot on its heels.

Deutsche Bank and Credit Suisse organised the flotation of Instone with the help of Morgan Stanley, BNP Paribas and Unicredit. Lilja acted as IPO advisor. (Reporting by Maria Sheahan and Arno Schuetze; Editing by Tom Sims and Adrian Croft)

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