Deutsche Annington Said to Cut IPO Size to $845 Million
Deutsche Annington Immobilien SE (ANN), Germany’s largest residential landlord, is reducing the size of its initial public offering to about 650 million euros ($845 million) after investor demand fell short, said people with knowledge of the matter.
Deutsche Annington, majority owned by Terra Firma Capital Partners Ltd., will raise a targeted 400 million euros from the sale of new shares while a secondary offering of shares has been cut to about 250 million euros, the people said, asking not to be identified because the process isn’t public. Shares will be priced at 18 euros, the lower end of a price range of 18 to 21 euros, they said.
Deutsche Annington, the second German real estate company to list this year, has been attempting to attract investors as market indexes are paring their gains. China money-market rates have reached a record, in one sign of a cash squeeze, and the Federal Reserve recently said it may cut back bond buying should the U.S. economy improve. In June, the Stoxx 600 index had its first monthly loss in over a year.
The residential landlord in which Apollo Global Management LLC owns a stake was seeking to raise 1.1 billion euros from the IPO that closed for subscription today. Banks managing the sale sent a message to investors earlier today saying order books were 80 percent subscribed.
HD Supply Holdings Inc. and CDW Corp., two U.S. companies backed by private-equity firms, had to price their IPOs below their original targets last month. Votorantim Cimentos SA, Brazil’s biggest cement producer, rescheduled a planned $3.7 billion IPO for September.
JPMorgan Chase & Co. and Morgan Stanley are leading Deutsche Annington’s IPO. Other managers include Bank of America Corp., Deutsche Bank AG, Societe Generale SA, Berenberg Bank, Commerzbank AG and Kempen & Co.
A spokesman for Deutsche Annington declined to comment.