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Dutch ABN Amro to continue with IPO in Q4

Xinhua, October 28, 2015 Adjust font size:

Dutch nationalized bank ABN Amro and the Dutch government announced the start of the ABN Amro Initial Public Offering (IPO) process, the so-called "Intention to float", on Tuesday.

In May this year the Dutch government agreed on the IPO and both parties now confirmed the intention to proceed with the next step and the listing of ABN Amro on Euronext Amsterdam.

The intended IPO will consist of a secondary offering of depositary receipts representing shares in the bank. The offering and timing thereof are according to a statement by ABN Amro subject to, among others, market conditions. Barring unforeseen circumstances the IPO could be launched in the fourth quarter of 2015.

"Today's announcement marks an important step towards our new future," Gerrit Zalm, CEO of ABN Amro, said in a press release. "We are proud that we are now ready for this next step in the process."

Once approved by the Dutch Authority for the Financial Markets (AFM), the prospectus will be published and made available to the public at the start of the offering period. This prospectus includes a detailed description of the bank, risk and growth expectations and information on the hare price.

In October 2008, the Dutch State nationalized ABN Amro in order to safeguard financial stability, to save the bank and to keep it in the Netherlands. Since this nationalization, the Dutch Ministry of Finance has emphasized the temporary nature of the investment. The bank was re-established in its current form in 2010.

The sale of the bank will take place in phases, with first between 20 and 30 percent of the shares being sold, followed by more state interest. The NLFI (NL Financial Investments), which currently exercises the government's rights as current sole shareholder of ABN Amro, will retain a significant majority holding after the listing, although it is the intention to fully exit from the bank over time.

The announcement of Tuesday is in line with the previously announced objective of the Dutch Minister of Finance Jeroen Dijsselbloem to return ABN Amro to the market if the financial sector is stable, if there is sufficient interest in the market and if the company is ready to be privatized. The NLFI has informed the Minister that it has reassessed these conditions and it has advised to proceed with the IPO.

"As of the nationalization, it has been clear that ABN AMRO would be privatized again as soon as reasonably possible," Michael Enthoven, chairman of NLFI, said. "Enormous efforts have been made since then. I am pleased to advise the Minister to continue with the process."

According to Dutch financial newspaper het Financieele Dagblad the IPO could yield between 17 and 19 billion euros (18.8 to 21.0 billion U.S. dollars), but in May this year Dijsselbloem said he aimed at only 15 billion euros. The nationalization in 2008 cost the government in total 21.66 billion euros (24.0 billion U.S. dollars). Endit