Postbank stock issue successful06/23/2004, 01:00 AM CEST
- Price per share EUR 28.50
- Largest German IPO since 2000
- Total transaction volume EUR 2.53 bn
Postbank's equity and exchangeable bond issues have been successfully placed. The stock was more than one and a half times oversubscribed, triggering lively response from institutional investors in Germany and abroad. More than 20 percent of the volume was allotted to retail investors. Following the bookbuilding period the issue price was set at EUR 28.50, taking Postbank's market capitalization to over EUR 4.67 bn. The issue volume amounts to approximately EUR 1.55 bn based on the set issue price and including full exercise of the greenshoe options. The Postbank stock was issued in Germany by way of a public offering. The stock was also offered to institutional investors worldwide by way of a private placement.
At the same time, an exchangeable bond issue amounting to EUR 0.98 bn on 27.5 million Postbank shares was placed with institutional investors. The three-year bond will carry a coupon of 2.65 percent. The exchange premium is 38 percent.
Deutsche Post AG's Chairman of the Board of Management, Dr. Klaus Zumwinkel, was satisfied with the issue. 'We are pleased that in this difficult market environment, our innovative transaction structure has succeeded in attracting worldwide investors for Postbank. With this successful IPO we have revealed the value of Postbank, yielding EUR 2.6 bn in the process. This will benefit both Deutsche Post World Net as a whole and Deutsche Post's shareholders, a fact also confirmed by the positive feedback we received from the market after communicating the new structure,' he said.
Prof. Wulf von Schimmelmann, Postbank AG's Chairman of the Management Board, was also pleased with the successful placement. 'We have managed to convince German and international investors of our company's strength and growth potential. We will demonstrate also to our new shareholders how powerful Germany's largest retail bank is,' Schimmelmann commented.
The demand for the approximately 54.5 million shares in this placement (including a greenshoe for up to around 4.5 million shares), held to date by Deutsche Postbank Beteiligungs GmbH, ran to over 143 million shares. The greenshoe was exercised in full. With an order volume of EUR 4.7 bn the exchangeable bond was more than three times oversubscribed.
Retail investors subscribed 22.9 million shares in total. The allotment process is based on the 'principles governing the allotment of shares to retail investors', following standardized criteria applicable to all underwriting banks and their affiliated institutions. All retail investors who subscribed to the issue shall receive an allotment of shares. In terms of allotment to retail investors, the following applies:
- Priority retail investors holding a brokerage account at Postbank shall be allotted the full number of ordered shares.
- Priority retail investors who were also Deutsche Post AG shareholders when they subscribed shall receive full allotment for up to one hundred ordered shares plus 60 percent of the order exceeding that number.
- Other retail investors shall receive full allotment for up to 60 ordered shares plus 20 percent of the order exceeding that number.
More than 20 percent of shares offered for subscription were hence placed with retail investors in Germany. Institutional investors in Germany received around 28 percent of the issue volume, while approximately 48 percent of shares offered for subscription were privately placed outside Germany exclusively with institutional investors.
Postbank had communicated already on June 12 that more than 60 percent of staff at Deutsche Postbank AG and retail outlet staff had subscribed shares as part of a special employee stock ownership program. Orders submitted by staff for a total of around 1.7 million shares will be allotted in full.
All proceeds from the issue of Postbank stock will accrue to the parent company Deutsche Post and will benefit the Group's strategic development. Postbank's IPO is the largest new issue in Germany since the IPO of Deutsche Post AG in November 2000 and also one of the largest issues ever in the German capital market. With immediate effect Postbank stock (symbol: DPB) is freely tradable on the Frankfurt Stock Exchange and all German regional stock exchanges.