AMSTERDAM: The government of the Netherlands said on Tuesday that it expected to raise 4.3 billion euros, or about $4.6 billion, through the sale of shares of the state-owned lender ABN Amro in an initial public offering this month.
The government said it would sell up to 23 percent of the company as it seeks to recoup some of the tens of billions of euros it spent to rescue the lender seven years ago.
NL Financial Investments, which manages the government’s holdings in the bank, said it expected the offering to consist of 188 million shares, to be sold at €16 to €20 a share. That would value the company at €18.8 billion at the top end of the price range.
If an overallotment of shares is fully exercised, the Dutch government could raise as much as €4.3 billion.
Obtaining a listing is a logical step following the strides we have made in our development since the establishment of ABN Amro in its current form in 2010,” Gerrit Zalm, chairman of ABN Amro’s managing board, said in a news release. “Our business case is solid, we have a moderate risk profile and are able to offer our clients a broad range of services.”
The company’s shares are expected to begin trading on the Euronext stock exchange in Amsterdam on Nov. 20.
The offering will consist of sales to retail and institutional investors in the Netherlands and a private placement to qualified institutional investors internationally.
Proceeds from the sale would go to the Dutch government, not to ABM Amro. The Dutch government would still own 77 percent of the company after the offering.
The bank traces its roots to ABN Amro Holding, which broke up in 2007 after a €71 billion deal in which the Royal Bank of Scotland, Banco Santander of Spain and the Belgian bank Fortis bought parts of the company.
