- All shares in IPO covered one day after orders began
- Offer of 23% stake is at the low end of expectations
ABN Amro Group NV, the nationalized Dutch lender, has attracted demand for all the shares on sale in its initial public offering, just a day after order-taking began.
Terms sent to investors on Wednesday show the entire deal, including the so-called greenshoe, is covered. The government is selling a 23 percent stake in the nationalized lender in an offering that may raise as much as 4.3 billion euros ($4.6 billion).
"ABN is offering a percentage of shares at the low end of what was initially expected,” said Jos Versteeg, an analyst at Theodoor Gilissen Bankiers NV. “They’ve created a shortage.” Dutch Finance Minister Jeroen Dijsselbloem said in May that the government may sell as much as 30 percent of its stake.
The state, which spent 22 billion euros to bail out the bank following the 2008 financial crisis, is seeking to recoup part of its investment in the first of a series of stake sales. The offering is shaping up be Europe’s largest banking IPO since Russia’s VTB Bank raised 6 billion euros more than eight years ago. The shares are set to begin trading in Amsterdam on Nov. 20.
Morgan Stanley, Deutsche Bank AG and ABN Amro are managing the IPO, along with Bank of America Corp., Barclays Plc, Citigroup Inc., JPMorgan Chase & Co., ING Groep NV and Rabobank.