Ablon Group, a Hungarian property developer with units in Prague and Bucharest, wants to raise some £100 million (€151.9 million) by selling shares on London's Alternative Investment Market to expand in east Europe.
Ablon Group, based in Budapest, plans to sell about 33.3% of the company at between £2.38 and £2.85 per share, which would value the company at as much as £300 million, it said in a statement today.
The shares will be sold February 7. The company, which was founded in 1993, has developed 140,000 square meters (1.5 million square feet) of property and plans to complete 690,000 square meters more in the next five years. Ablon will reinvest money raised by the share sale to strengthen units in Budapest, Prague and Bucharest and expand into new markets. „The offering is primarily intended to provide funds to invest in the existing development properties, as well as to acquire additional projects in existing and new markets,” CEO Uri Heller said in the statement.
Ablon posted gross rental income of €6.7 million ($8.7 million) and gross residential income of €2.7 million in the nine months ended September 30. Heller owns 47.6% of Ablon, which will drop to 32% after the offering. Oesterreichische Volksbanken AG's 47.6%-stake will also decrease to 32%, Ablon said. (Bloomberg)