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Hungarian developer raises £87.5 mln in share sale

Ablon Group Ltd., a Hungarian real estate developer, raised £87.5 million ($172 million) in an initial public offering in London to help fund expansion.

Ablon Group Ltd. sold 35 million shares at 250 pence each to institutional investors, the Budapest-based company said in a statement today. The new stock accounts for 33% of the company's share capital.
Credit Suisse Group, which managed the IPO, may sell another 5.25 million shares to meet demand, raising an additional £13 million. „The funds raised will enable us to finance both our current and future real estate projects, as well as to acquire additional projects in existing and new markets,” CEO Uri Heller said in the statement.
Ablon operates in the Czech Republic as well as Hungary and is expanding in Romania. Real estate companies are targeting countries in central and eastern Europe for better returns than they can achieve in more mature real estate markets in western Europe. Ablon's shares will start trading on London's Alternative Investment Market on February 7. The shares were at 251 pence in conditional trading at 8:21 a.m. in London. (Bloomberg)