Considerable demand for shares in Føroya Banki
Offering subscribed 26 times
The initial public offering of 6,000,000 shares of DKK 20 nominal value in
Føroya Banki was met by strong demand from investors on the Faroe Islands, in
Iceland and in Denmark, as well as from investors across the rest of Europe.
The strong interest in participating in the privatisation of Føroya Banki
resulted in the offering being subscribed 26 times.
Following consultations with the Global Coordinator Handelsbanken Capital
Markets, the Financing Fund of 1992, which owns 99.4% of Føroya Banki, has
decided to set the offer price at DKK 189 per share corresponding to the top of
the offer price range of DKK 162 - DKK 189. The IPO values Føroya Banki's total
equity capital at DKK 1,890 million.
The offering resulted in approximately 15,000 new shareholders in Føroya Banki,
of which some 9,000 on the Faroe Islands. More than 50% of the shares are
expected to be placed with retail and institutional investors on the Faroe
Islands.
The Financing Fund of 1992 has granted rights to Handelsbanken Capital Markets
for up to 30 days from the first trading day to exercise an over-allotment
option for up to 600,000 shares. If the over-allotment option is exercised in
full, the offering will amount to a total of 6,600,000 shares.
Allocation of shares
As demand exceeded the number of offered shares, The Financing Fund of 1992 and
Handelsbanken Capital Markets have scaled back the applications received.
The allocation of shares for applications up to and including DKK 2 million has
been made as follows:
• Applications up to and including 60 shares corresponding to DKK 11,340
have been allocated in full.
• Applications for more than 60 shares have been allocated 60 shares and 2%
of the remaining order rounded upwards to the nearest whole number of
shares.
Allocation of shares for applications for more than DKK 2 million has been made
on an individual basis.
Approximately 20% of the offering has been allocated to retail investors on the
Faroe Islands, in Iceland and in Denmark.
Time table
First day of trading: 21 June 2007
Payment for the offer shares: 25 June 2007
There has been no public market for the shares prior to the offering. It is
expected that trading in the shares on ICEX and the CSE will commence under the
symbol FO-BANK on June 21, 2007 at 10:00 Icelandic time. Delivery and payment
is expected to take place on June 25, 2007.
Proceeds
The gross proceeds from the offering will amount to DKK 1,247 million, if the
overallotment option is exercised in full. The Financing Fund of 1992 will
receive the net proceeds from the offering.
Following the completion of the offering, the chairman of the Financing Fund of
1992, Eyðun á Rógvi, said:
”We are extremely satisfied with Føroya Banki's successful birth as a
privatized and listed company. The political objectives that were set prior to
the privatization have been reached and we have received a good price for the
bank. This bodes well for the bank's future and its continued impact on the
positive development of the Faroese society.”
Føroya Banki's CEO, Janus Petersen, said:
”We are very pleased with how the initial public offering went and very proud,
indeed, of the considerable interest that both private and institutional,
Faroese and international investors have shown the bank. The result is very
well aligned with our strategy for the bank's internationalisation while at the
same time keeping our strong roots in the Faroese community.”
Further information:
Eyðun á Rógvi, Chairman of the Financing Fund of 1992, mobile (+298) 213 048
***
This announcement does not provide all the information that can be of
importance to potential investors. Prior to making a decision to make an
investment in shares in Føroya Banki, potential investors should read carefully
the entire prospectus including, but not limited to, the section "Risk
Factors". The announcement contains forward-looking statements on the future
development of Føroya Banki, its financial results and other statements, whish
are not historical facts and which can prove to be incorrect. The announcement
does not constitute an offer or an invitation to make an investment in Føroya
Banki. The release of the prospec tus and/or the offering of shares may in some
jurisdictions be subject to restrictions and may not be permitted. Persons
subject to restrictions, including, inter alia, persons residing in the United
States of America, Canada, Australia and Japan, are not authorized to receive
the prospectus or to obtain information regarding the offering of shares in
Føroya Banki. Potential investors are recommended to examine all relevant risks
and legal aspects, including in relation to taxation and currency restrictions
that may be of relevance regarding an investment in shares in Føroya Banki.
