May 17, 2018 / 7:36 AM / a year ago

Iceland's Kaupthing seeks IPO for domestic arm Arion Bank

STOCKHOLM, May 17 (Reuters) - Iceland’s Arion Bank said on Thursday it planned to list its shares on the Nasdaq Iceland and Swedish depository receipts on Nasdaq Stockholm in the first half of this year aiming to expand its investor base.

The bank said it had not decided the size of the initial public offering (IPO) but it is expected to be at least 25 percent of its total shares outstanding plus an additional over-allotment option to be sold by Kaupthing, which owns a 55.57 percent stake.

Kaupthing - a major international bank prior to the Icelandic financial system’s meltdown - went into administration in 2008 and its domestic operations were separated and renamed Arion Bank in 2009.

Under the offer, a subsidiary of Kaupthing will sell part of its stake in its domestic arm and Arion Bank will not receive any proceeds from the sale.

“The IPO and the listing on Nasdaq Iceland and Nasdaq Stockholm will expand the shareholder base and better enable Arion Bank to access the Icelandic, Swedish and other international capital markets,” Arion Bank said in a statement.

Arion Bank Investment Banking, Carnegie, Citigroup and Morgan Stanley are acting as joint global coordinators, while Deutsche Bank and Goldman Sachs International will be acting as joint bookrunners in relation to the IPO. (Reporting by Esha Vaish in Stockholm Editing by Simon Johnson and Matthew Mpoke Bigg)

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