Slovenian Weekly Regional Overview 5.11.2018 - 9.11.2018
NLB IPO
NLB IPO subscription period is behind us.
State has sold 59.1% of NLB (50% to 75% of the shares were on sale in the process) at a price of EUR 51.5 per share. The remainder of the stake remains in state hands with end plan that state keeps 25% share in the Slovenian biggest bank. So further divestment by the state is warranted.
The end price is at the bottom of the price range set for the IPO (EUR 51.5 to EUR 66.0 per share) and is a disappointment. Namely while we have expected its likely the bottom half of the range will materialize, we did not expect a price at the very bottom of the range. True timing in the end was not beneficial for bank IPO.
EUR 51.5 stipulates 0.67 P/B (Equity of 1,797m on 30TH June, minus EUR 270.6m of dividend paid before the IPO). Also given some rough estimation regarding further profitability and 70% dividend payout ratio this could mean NLB will have a hefty dividend yield (above 8%). Please be warned this is only a rough estimation, however P/B of 0.67x is a reality.
State budget will be wealthier by EUR 609m due to this. Since there is also a price stabilization mechanism (over-allot6ment fund), further stake will be sold and state could receive in the end about EUR 670m (65% stake of the bank).
Media reported that main (biggest) two shareholders are Brandes Investment Partners with 7.6% and EBRD with 6.3%.
Small shareholders could buy up to 10% of the stake … roughly 2% was subscribed.
Trading will commence on Wednesday.
Krka is a public generic pharmaceutical company based in Slovenia. Co. is engaged in the development, production, sale and marketing of human health products (prescription and selfmedication pharmaceuticals and cosmetics), animal health products and health resort and tourist services. Co. focuses on a range of generic prescription pharmaceuticals, which are marketed under Co.'s own brands. Co. offers customers in over 70 countries a broad range of prescription pharmaceuticals, self-medication products and animal health and cosmetic products. Co.'s activities are supplemented by health resort and tourist services of Terme Krka.
ALTA Invest, investicijske storitve, d.d., (ALTA Invest, investment services, Inc.) is a part of ALTA Group, the biggest financial non-banking group in Slovenia. ALTA Invest has around 28% market share on the domestic Ljubljana Stock Exchange and has more than EUR 95m of assets under management.
Our trading advantage is our execution of large trading blocks with low impact on the market. We offer trading on several platforms on numerous markets, with a wide variety of financial instruments. Our advantage is also a research department, which is both sell side and buy side and has the far most extensive and regular coverage of domestic companies. We cover 9 companies on Ljubljana Stock Exchange, which is around 90% of Mcap on LJSE – and here we are practically the only local broker providing this kind of extensive and regular coverage for Slovenian companies.
A part of ALTA Group are ALTA Skladi, a mutual fund asset management company with roughly EUR 260m of asset under management. ALTA Group is also extensively involved in corporate finance projects and raised considerable assets (fixed income and equity) in the last two years for several companies.
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