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Slovenia sets NLB price range at 51.5 - 66.0 euro/share ahead of IPO

Slovenia sets NLB price range at 51.5 - 66.0 euro/share ahead of IPO Author: NLB. License: All rights reserved.

LJUBLJANA (Slovenia), October 26 (SeeNews) – Slovenia's government said on Friday it has set the price range in a public offering of the shares and the global depositary receipts (GDR) of Nova Ljubljanska Banka (NLB) on the bourses in Ljubljana and London at 51.5 euro to 66.0 euro per share and at 10.3 euro to 13.2 euro per GDR.

The offer and subscription period commences at 9:00 CET on October 29 and is expected to end at 13:00 CET on November 7 for retail investors and at 13:00 CET on November 8 for institutional investors, the government said in a filling to the Ljubljana Stock Exchange.

“The timetable of the Offering may be accelerated or extended,” it added.

“Trading in the GDRs on the London Stock Exchange under the symbol “NLB” and on the Ljubljana Stock Exchange under the symbol “NLBR” is expected to commence on 14 November 2018. There will not be any conditional trading in the Offer Securities.”

NLB will offer at least 50% of the company’s existing shares plus one share and up to 75% of the company’s existing shares less one share currently owned by the selling shareholder in an institutional offering of shares to be listed on the LJSE and GDRs representing shares to be listed on the LSE, and a public offering of shares and GDRs in Slovenia.

Based on the share capital of NLB, the offer price range corresponds to a current equity value of approximately 1,030 euro - 1,320 euro million for NLB, the statement noted.

The selling shareholder has appointed WOOD & Company Financial Services as stabilising manager in respect of the offer shares and Citigroup Global Markets Limited as stabilising manager in respect of the offer GDRs.

NLB is a financial and banking group based in Slovenia with a network of 349 branches as at 30 June, of which 108 branches operate in Slovenia and 241 operate in the banking markets of Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia. It is the leading bank in the Slovenian market with a market share of 23.2%, according to data from the country's central bank as of 30 June 2018.

NLB recorded a net profit attributable to shareholders of 104.8 million euro ($119.4 million) in the first half of 2018.

The  Slovenian government aims to dispose of a further 25% plus one share in the bank in 2019, it said earlier this year.

NLB showed a minor capital shortfall under the adverse scenario of the stress test conducted by the European Central Bank in October 2014.

Nova Ljubljanska Banka has been 100% state-owned since 2013, when the Slovenian government stepped in to recapitalise it and two other lenders - NKBM and Abanka, narrowly avoiding an international bailout. The same year, Slovenia committed to the European Commission to sell part of NLB within four years.

In April, the European Commission said the aid granted to NLB by Slovenia in 2013 is unlawful because the government has failed to deliver on its commitment to sell the bank by the end of 2017. The partial sale of Slovenia's shares in NLB is a key commitment to ensure NLB's long-term viability, on the basis of which the Commission was able to approve significant state aid to NLB in December 2013, the European Commission said.

($ = 0.8777 euro)