German residential property developer Instone Real Estate is considering a stock market flotation next year to raise funds for growth which could value the company at as much as 800 million euros ($940 million). "Jointly with our owner Activum SG we are examining various strategic financing options," Instone said in a statement on Wednesday, adding that those could include an initial public offering or a private placement of shares.
The company is working with Deutsche Bank and Credit Suisse on a transaction which may value the company at roughly 700 to 800 million euros, people close to the matter said, adding that a deal is expected to take place in the first half of 2018.
As a real estate developer, it is less directly comparable with German property groups such as Vonovia or Deutsche Wohnen which own and rent out flats. It has more in common with companies such as Ireland's newly-listed Glenveagh Properties and Spain-based Neinor Homes. The banks declined to comment.
Germany has seen relatively few IPOs this year, but investment bankers have put that down to a dearth of companies at that stage of development rather than a lack of investor appetite. Reuters had reported in September that Instone was considering a stock market flotation.
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