ING has announced that it intends to offer 70 million ordinary shares in the share capital of its subsidiary NN Group at an indicative offer price range of E18.50 to 22.00 per share. Based on this price range, the initial offer size, or gross proceeds of the offering, would be approximately E1.3 to 1.5bn. NN Group shares are expected to be listed and start trading on Euronext Amsterdam on 2nd July(on an if-and-when-delivered basis) under the listing name “NN Group” and the symbol ‘NN’.
ING has granted the joint global coordinators, on behalf of the underwriters, an over-allotment option to purchase up to approximately 10.5 million additional shares in NN Group until 30 days after the first trading date of NN Group shares. The over-allotment option, if exercised in full, would represent approximately 3% of the NN Group shares outstanding at settlement of the IPO.
After the sale of 70 million shares in the IPO(without giving effect to the over-allotment option), and the exchange of the E450m subordinated mandatorily exchangeable notes into NN Group shares by ING(at the midpoint of the offer price range), ING’s ownership of NN Group would decline to 73.6%. The announcement is in line with ING’s stated objective to divest its insurance and investment management businesses. Following the IPO, ING intends to reduce its shareholding in NN Group to below 50% before 31st December 2015 and divest the remaining stake before 31st December 2016, in line with the timeline ING has agreed with the European Commission. ING retains full flexibility in the way it may execute the divestment of the remaining stake in NN Group post IPO.
Ralph Hamers, CEO of ING, comments "Announcing the offer price range is another key step in NN Group’s IPO process as it kick-starts the period during which NN Group’s management will meet with potential investors and share NN Group’s strategy, customer proposition and investment case."
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