Prime Office AG (ISIN: DE000PRME012) joined the Prime Standard of the regulated market on the Frankfurt Stock Exchange on 1 July. A total of 34.5 million new no-par value ordinary bearer shares were placed in the IPO.
The capital increase will generate around €214 million in gross issue proceeds for Prime Office AG. The issue price was €6.20 and the initial listing price €6.85. Lead manager and designated sponsor are Berenberg Bank and Unicredit Bank AG. Kempen & Co N.V. and Macquarie Capital (Europe) Limited are acting as co-lead managers. Baader Bank is specialist.
“Prime Office AG is yet another German company making its IPO which is availing itself of the advantages of Deutsche Börse’s REIT segment,” said Frank Gerstenschläger, member of the Executive Board of Deutsche Börse AG and responsible for the Xetra business area. “By listing in the Prime Standard, it joins around 350 companies that meet the highest transparency requirements, and visibly position themselves to national and international investors.”
“We are pleased about the successful IPO and thank our investors for their confidence in Prime Office AG,” affirmed Claus Hermuth, chairman of the executive board of Prime Office AG. “We will continue to grow Prime Office through value-enhancing asset management of our existing portfolio and selective acquisition of additional attractive office properties.”
Prime Office AG is a real estate company that focuses on investments in high-quality office properties in Germany, as well as their management and administration. It will be the fourth German company in Deutsche Börse’s REIT segment after filing with the Court of Registry.
REITs are real estate businesses with the purpose of purchasing and/or selling, as well as managing properties. The key feature of REITs is that profits are taxed at unitholder level and not at shareholder level. 90% of the annual net profit in terms of commercial law is distributed as dividends.
New entrants to the Frankfurt Stock Exchange in 2011 per segment: Prime Standard 10, General Standard 5, Entry Standard 10, Open Market 111.