Romanian Luxury Home Developer Readies June IPO to Fund Growth
One United Properties, the largest developer of high-end residential projects in Romania, is preparing an initial public offering in early June, in what could become the first new listing on the Bucharest main market in three years.
The company will start meeting institutional investors as early as this week and is working on the IPO prospectus, according to Managing Director Victor Capitanu.
“The Romanian capital market has good growth potential,” Capitanu said in an e-mailed response to Bloomberg questions. “we want to contribute to the development of a strong and sustainable market.”
After winning an upgrade to emerging market status from FTSE Russell last year, the stock market in Bucharest has been struggling to attract new issuers and boost liquidity. It’s also vying for an upgrade from MSCI Inc.
Read More About Bucharest Stock Exchange IPO Plans
Two former investment bankers, Capitanu and company co-founder Andrei Diaconescu control 75% of One United. They plan to retain the majority of shares after the IPO. The exact size of the offering will be decided after investor meetings.
Previous rounds of funding have valued the company at more than 450 million euros ($542 million), according to estimates by Ziarul Financiar newspaper.
The company is developing more than 4,000 luxury apartments and several office buildings in Bucharest. It aims to become the largest real estate developer in Romania, a market currently dominated by foreign players including NEPI Rockcastle Plc and Globalworth Real Estate Investments.
One United will also consider expansion opportunities abroad, Capitanu said.
“We will invest the proceeds from the offering in developing new residential or mixed project, with a focus on clients with average and above-average income, where we see a large growth potential,” Capitanu said.
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