Bawag Sells 1.9 Billion Euros of Shares in Austria's Biggest IPOBy
Bawag Group AG, Austria’s fourth-biggest bank, sold 1.9 billion euros ($2.3 billion) of shares in the biggest initial public offering ever on the Vienna stock exchange.
Owners of the Vienna-based lender, led by Cerberus Capital Management and GoldenTree Asset Management, sold 40.25 million shares at 48 euros apiece in the transaction, Bawag said in a statement Tuesday. That price compares with a marketed range of 47 euros to 52 euros and gives the lender a market value of 4.8 billion euros at the IPO price.
Bawag is the first Austrian bank to go public in Vienna since Raiffeisen Bank International AG raised 1.1 billion euros in 2005. Until now, the country’s biggest IPO was builder Strabag SE’s sale of 1.3 billion euros of stock in 2007.
Bawag’s shares start trading in Vienna on Wednesday. Its owners only sold existing shares in the IPO. Cerberus will own 32 percent of Bawag following the deal and GoldenTree will own 23.5 percent, according to the IPO prospectus.