EFG Financial Products Holding AG, the Zurich-based integrated structured investment service provider, today launched its initial public offering on the SIX Swiss Exchange with the publication of the offering memorandum and the start of the book-building process. The price range per registered share being offered in the IPO will be CHF 40 to CHF 50. Listing and commencement of trading is expected on 19 October 2012.
The initial public offering of EFG Financial Products Holding AG, the integrated structured investment service provider based in Zurich, comprises a base offering of up to 2,937,137 registered shares with a nominal value of CHF 2.00 per share. This base offering consists of 1,666,665 new registered shares to be issued by EFG Financial Products, and up to 1,270,472 existing registered shares offered by EFG International. Furthermore, EFG International has granted the underwriters an over-allotment option of up to 293,713 additional existing registered shares which can be exercised within 30 days after the fi rst trading day.
Upon successful completion of the offering, the issued share capital of EFG Financial Products will consist of 6,666,665 registered shares. The price range per registered share being offered in the IPO will be CHF 40 to CHF 50. Including existing and newly issued shares, this implies a future market capitalisation of EFG Financial Products in the range of approximately CHF 267 million to approximately CHF 333 million. After completion of the IPO, EFG International will continue to hold a stake of not less than 20% in EFG Financial Products, down from approximately 58%1 .
EFG International has agreed to a lock-up of its remaining stake in EFG Financial Products which ends twelve months after the fi rst day of trading. The founding partners of EFG Financial Products, who currently hold approximately 34% of the company, have agreed to a phased lock-up ending fi ve years after the fi rst trading day, with the lock-up being phased out on a linear basis from the end of year three to the end of year fi ve. Other employees currently holding approximately 8% of the company have committed to a phased lock-up on a linear basis ending three years after the fi rst trading day.
The free-fl oat of EFG Financial Products – which excludes the shares held by EFG International as well as those held by the founding partners and the shareholder employees of EFG Financial Products – is expected to amount to approximately 44% of the issued share capital, or approximately 49% if the over-allotment option is exercised in full.
Book-building begins on 8 October 2012 and is expected to end on 18 October 2012, 12.00 CEST. The fi nal offer price is expected to be published on 19 October 2012 before the start of trading. Listing and commencement of trading in shares on the SIX Swiss Exchange is expected on 19 October 2012.
The offering consists of a public offering in Switzerland, private placements in certain jurisdictions outside the USA, and private placements allocated to certain clients, business partners, employees and members of the board of directors of EFG Financial Products as well as other persons on a preferential basis, where such allocations are permissible (in each case in accordance with applicable securities laws and in reliance on Regulation S under the US Securities act of 1933, as amended). The preferential allocation will be offered at the offer price, and the order-taking process will run according to the same timetable as the institutional offering. Credit Suisse is acting as global coordinator and bookrunner. Bank Vontobel AG and Crédit Agricole CIB are acting as co-lead managers. Rothschild is acting as independent advisor to EFG International and EFG Financial Products.
Jan Schoch, CEO of EFG Financial Products: “The initial public offering that we have launched today has been an objective of both EFG International and the founding partners since EFG Financial Products commenced operations in 2007. It is a refl ection of how far the business has come, and we are now established as one of the leading providers of structured investment products in the Swiss market. We are excited about the benefi ts of the IPO in terms of our future development. A more independent setup will be helpful in relation to our white labelling strategy, while the proceeds from new shares being issued will support our growth initiatives and strengthen our capital base.”