LJUBLJANA, Nov. 9 (Xinhua) -- In its long-delayed privatisation of Nova Ljubljanska banka (NLB), the state's largest bank, Slovenia will initially sell nearly 60 percent of the bank at the start of trading on the Ljubljana Stock Exchange and the Main Market of the London Stock Exchange on Nov. 14.
Citing a release from the bank and Slovenian Sovereign Holding (SSH), the Slovenian Press Agency STA on Friday reported that it will be fetched 51.50 euros per share in the initial public offering, the bottom of the offering price range, for just below 609 million euros.
It will sell 59.1 percent of the bank initially, but taking into account an overallotment option that stake could increase to 65 percent.
Based on the pricing, the market capitalisation of NLB will be approximately 1.03 billion euros at the start of trading on the Ljubljana Stock Exchange and the Main Market of the London Stock Exchange on Nov. 14, the STA said.
The seller is making an additional 1,181,819 NLB shares available pursuant to the overallotment option which, if exercised in full, would increase the offer size to 669.5 million euros, representing 65 percent of the share capital on admission.
A stabilisation mechanism, the option is said to have been made available on the demand of large international investors. Stabilisation managers Citigroup and WOOD & Company will retain a portion of the shares to close deals within 30 days from listing in order to stabilise the price.
"We are very proud of having completed the offering of NLB's shares. Today's announcement represents a significant milestone in the privatisation process and in fulfilling our commitments to the European Commission," SSH chairman Lidia Glavina was quoted as saying in the release.
NLB chairman Blaz Brodnjak hailed the pricing as "another important milestone in the process of privatization". "We are looking forward to opportunities and challenges that the listing on the stock exchange will bring to the bank."
