Fundamenta seeks fresh capital

Fundamenta Real Estate intends to issue a maximum of around 6.3 million new shares at a subscription price of CHF 14.50 per share. Luzerner Kantonalbank has undertaken to guarantee a maximum of 75 percent of the new shares in the base tranche as part of a partial firm underwriting, the company says. Shares not subscribed by existing shareholders are to be offered to new investors in Switzerland in a free placement to the public or freely placed in the market.

In addition, Fundamenta has granted Zürcher Kantonalbank and Luzerner Kantonalbank an over-allotment option of up to 946,000 shares, exercisable within 30 calendar days from the first trading day on the SIX Swiss Exchange - expected to be December 6. The net proceeds from the capital increase will amount to up to CHF 86.60 million, or up to CHF 100.05 million if the over-allotment option is exercised in full.

With the capital increase Fundamenta will move from the BX Swiss to the SIX Swiss Exchange. The IPO is accompanied by Zürcher Kantonalbank as lead manager and Luzerner Kantonalbank as co-lead manager.

The funds from the capital increase are to be used for the expansion of the real estate portfolio. Fundamenta acquired a property in Zurich (Wollishofen district) for 16.09 million on November 16, 2018, on which a new building with around 26 residential units is to be constructed. The acquisition valuation as of completion for this development project is 25.23 million, the company said. (ah)