(Bloomberg) -- Shopper Park Plus Zrt., an investor in retail parks in both Hungary and the Czech Republic, aims to raise as much as €53.1 million ($56.2 million) in the first euro-denominated initial public offering on the Budapest Stock Exchange.
The move will make it the third company on Hungary’s main bourse with shares trading in euros, joining office-park developer and operator Graphisoft Park SE and venture capital investor OXO Technologies Holding Nyrt., which switched to listings denominated in the common currency on the BSE earlier this year.
Shopper’s controlling shareholder Adventum has said the shares would be listed in euros because the firm’s loans are primarily in that currency. The strategy may also attract investors seeking to avoid exposure to the volatile forint.
Adventum, private equity fund PortfoLion and its private holders will float Shopper shares in a price range between €10.8 and €11.5 each, issuing between 2 million and 4.62 million shares during a subscription period running from Oct. 9 to Oct. 20, according to an investor presentation.
The company will need to raise at least €21.6 million to ensure it reaches the 25% free float that’s required to achieve the status of a real estate investment trust, or REIT, which would bring tax advantages.
The IPO is also the first this year in the Hungarian capital, excluding a technical listing of the Budapest Stock Exchange itself. Joint-lead managers and bookrunners are Budapest-based brokerage Concorde Securities Zrt. and Hungary’s largest lender, OTP Bank Nyrt.
The company holds 18 retail parks anchored by Tesco supermarkets in the Czech Republic and Hungary, which were acquired last year for around €240 million. Adventum manages funds of commercial real estate in the region valued at more than €1 billion.
The IPO is designed to help the company carry out acquisitions of other retail parks with food offerings in the central and eastern European region.
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