Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IPOs: Too many, too fast, to little buyers? -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (60)	2/4/2001 1:38:45 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 84

Sunday February 4, 6:53 am Eastern Time Deutsche Boerse prices IPO at 335 euros, tops range (UPDATE: Adds sources comments on pricing, details on demand, background) FRANKFURT, Feb 4 (Reuters) - Deutsche Boerse AG said on Sunday it would issue its shares at 335 euros each in an initial public offering on Monday, valuing the German stock exchange group at 3.4 billion euros ($3.18 billion). Banking sources told Reuters that Deutsche Bank , the biggest single shareholder and joint global coordinator with Goldman Sachs, had wanted the IPO to be priced at 320 euros but Boerse Chief Werner Seifert had insisted on 335 euros, the top end of the 285-335 euros bookbuilding range. Deutsche Boerse said the IPO, Germany's biggest so far this year, was 23 times oversubscribed and cited strong institutional demand from abroad. The IPO, which consists largely of a capital increase, will raise 980 million euros, giving Deutsche Boerse funds for investment and acquisition currency for the next round of stock market consolidation in Europe. The stock exchange operator is listing up to 3.2 million shares on February 5 which consist largely of a capital increase of 2,546,000 shares. A further 264,000 shares are being provided by the banks, brokers and regional exchanges which currently own the group and 390,000 in a greenshoe option. Current shareholders applied for 419,676 shares and 27,741 shares will be given to the employees leaving 2.75 million shares for third parties. Out of these 2.75 million shares, some 80 percent will be held by institutional investors and 20 percent by retail investors. Deutsche Boerse said around 77 percent of demand for shares had come from international investors, particularly from Britain, Switzerland, Italy, Spain and the United States. German institutional investors accounted for 17 percent of demand and compatriot retail investors made up the remaining six percent. Deutsche Boerse will have 10.276 million shares after the Ipo. The group revived its plans to go public following a failed bid to merge with the London Stock Exchange last year. Bankers said the attractive price -- 335 euros represents a five percent discount to the fair value estimated by Deutsche Bank -- the exchange's technological expertise and Boerse chief Werner Seifert's roadshow went down well with investors. Deutsche Boerse was quoted on the grey market -- referring to unofficial trade before the shares are listed -- at 345 euros on Friday (http://de.finance.yahoo.com/html/de/r05.html) Deutsche Boerse owns the Frankfurt bourse, 50 percent of cross-border settlement house Clearstream International, half of derivatives exchange Eurex -- one of the largest in the world -- and is also active in energy and metals trading. U.S.-based Nasdaq said last week it hoped to break into Europe via a deal with pan-European Easdaq or the LSE in the next three to six months, a move which could spark a fresh round of consolidation among the continent's major exchanges. The high-tech growth stock market said it was also open to deals with Deutsche Boerse or Euronext, the merger of bourses in Brussels, Paris and Amsterdam, which is going public in May. Based on the issue price and projected 2000 net earnings of 200 million euros, Deutsche Boerse would list at a price-earnings ratio of around 17, cheaper than other quoted peers like Stockholm operator OM Gruppen and the Australian Stock Exchange. By market capitalisation, Deutsche Boerse will be bigger than OM Gruppen, the London Stock Exchange and the Australian Stock Exchange.