Glenveagh IPO proceeds reach €550m as extra shares issued

Glenveagh Properties, which last week became the second Irish homebuilder to float in the past two years, has seen the proceeds from its initial public offering (IPO) rise to €550 million, after brokers involved in the deal completed an option to issue an additional €50 million of shares.

Strong demand for the stock since the IPO last Tuesday has allowed the brokers in Credit Suisse to place the additional shares. These had been allocated last week but held back to ensure that there was a stable market immediately following the deal.

The additional shares – known as an over-allotment – were sold at €1 each, the IPO price, leaving the investors immediately in the money, as the stock closed at almost €1.13 on Tuesday.

Glenveagh, formed from the combination of residential development sites accumulated by US private equity firm Oaktree following the Irish property crash, and the assets of Maynooth-based builder Bridgedale, floated last week with 1,700 "shovel ready" units. It plans to build at least 1,000 homes a year by the end of the decade.

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The placement of the over-allotment has seen the stake of Oaktree dip from 17.9 per cent to 16.5 per cent, while the Singapore sovereign wealth fund GIC's holding dropping to 9.4 per cent from 10.2 per cent. The 4.9 per cent stake held by both Fidelity International and JP Morgan declined to 4.5 per cent.