Norway to List Entra in Offering That May Reach $1.2 Billion

Norway’s government will list its fully owned Entra ASA on the Oslo stock exchange in an offering that may value the real estate company at as much as 12.9 billion kroner ($2 billion).

The offering will comprise of 44.3 million new shares and 29 million to 64.7 million existing shares, according to a statement. The shares will be sold at 61 kroner to 72 kroner apiece and represent a free float of up to 58 percent, if priced at the middle of that range. That means sales of new and existing shares could reach 7.8 billion kroner.

“This is an important step to ensure diversity and increased private ownership,” Trade Minister Monica Maeland said in a statement. “Entra is expected to be one of the largest stock-exchange listings in Norway this year.”

Norway’s Conservative-led government came to power last year promising to reduce the state’s role in the economy of Scandinavia’s richest country. It said in June it would seek to cut its ownership in telecommunications operator Telenor ASA and weapons producer Kongsberg Gruppen ASA. It has also signaled it would even be willing to reduce the state’s 67 percent stake in Statoil ASA, the country’s biggest oil and gas producer.

Norway also granted the managers an over-allotment option to purchase up to 16.3 million shares, selling as much as 66 percent of the company. The book-building will start today and run until Oct. 16.

Property Holdings

The reduction of the state’s ownership in Entra was already approved by parliament under the previous Labor-led government.

Entra was created in 2000 when Norway separated its commercial real-estate from Statsbygg, the government’s property manager. The company is the market leader in office-buildings in Norway, owning and managing 107 buildings that cover 1.3 million square meters (14 million square feet). Its properties, which include the national library in Oslo, were valued at 27 billion kroner as of the second quarter, it said on its website.

ABG Sundal Collier Norge ASA, Goldman Sachs Group Inc. and Swedbank AB are joint global coordinators and joint book-runners. Danske Bank A/S, Handelsbanken Capital Markets and Kempen & Co are co-lead managers. DNB ASA is acting as financial adviser to the government.

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