Varia launches IPO

As the company announced on 16 November, up to 3.56 million new registered shares will be issued as part of the IPO, consisting of up to 3.1 million new shares from an ordinary capital increase and - if the over-allotment option is exercised - up to 464,562 shares issued as part of the company's authorized capital increase.

The share issue consists of a rights offering and a share offering. The former grants existing shareholders pre-emptive rights to subscribe to the shares offered. Shares for which subscription rights have not been exercised can be subscribed by new shareholders. The period for subscription rights and the subscription period begins on November 16 and is expected to end on December 2, 2016.

The issue price was set at CHF 35. It reflects the net asset value of the Varia shares plus five percent to cover the transaction costs and issue tax in connection with the IPO, Varia announced.

Patrick Richard, executive member of the Board of Directors of Varia US Properties AG, believes that the company, which invests exclusively in US multi-family homes, is well positioned to benefit from the most important market trends. For example, the trend in the US real estate sector is towards renting rather than owning, which is why demand for rental apartments is rising much faster than supply. According to Richard, rental income is also showing high growth rates, vacancy rates in the multi-family sector are low and the secondary and tertiary residential real estate market, on which Varia focuses, is growing robustly.

In the accounting period ended June 30, 2016, the company generated operating income of USD 33 million and an operating result of USD 13.2 million. In the medium term, the company is aiming for a dividend payout of six to eight percent of the sum of the issued share capital and the premium from the capital contributions. (ah)