(Adds detail, background)
MADRID, March 16 (Reuters) - Homebuilder Neinor Homes will price a planned March stock market flotation at 16.46 euros per share, it said on Thursday, valuing the company at 1.3 billion euros ($1.4 billion) in Spain’s first listing of a residential builder in more than ten years.
The deal, aimed at institutional investors, will include a capital increase of about 100 million euros to repay corporate debt and fund land purchases.
Neinor, which is based in Bilbao in northern Spain and is backed by U.S. private equity firm Lone Star, buys land for developments in areas with high demand for housing, including Madrid, Barcelona and the Basque Country.
Residential construction is returning to Spain after a 2008 property crash left a glut of unsold properties built with specultaive cash.
Neinor will begin to receive offers on March 17 and books will close on March 27, with a listing planned for March 29, it said in a prospectus posted with the Spanish stock exchange regulator.
Lone Star bought the property management arm of unlisted Spanish bank Kutxabank and about half the real estate assets on its books in December 2014.
Since then, the real estate management platform Neinor has more than doubled its land bank by investing in land that already has permits for construction.
It has 161 developments and more than 9,000 homes on its books with a gross asset value of 1.12 billion euros, according to a Savills real estate valuation.
The deal is one of three stock market listings announced so far this year in Spain. The two others are car parts maker Gestamp and cash-in-transit unit Prosegur Cash.
Citigroup and Credit Suisse are acting as joint global coordinators and bookrunners on the Neinor listing. Santander, BNP Paribas and J.P. Morgan are also bookrunners on the deal. Investment bank Lazard is advising. ($1 = 0.9314 euros)
Reporting by Sonya Dowsett; Editing by David Goodman