Deutsche Annington rises on its debut after delayed IPO

 
City A.M. Reporter
SHARES in German real estate group Deutsche Annington rose on their debut on the Frankfurt stock exchange marking a successful end to a turbulent run-up to the initial public offering (IPO).

The stock, which had been priced at the very bottom of a revised range of €16.50 to €17.00, opened at €17.10 and gained up to six per cent in early trading, outperforming a one per cent rise of the sector.

“We have a bit of a rollercoaster ride behind us,” chief executive Rolf Buch said as he rang the bell at the stock market open.

Private equity group Terra Firma, majority owner of Deutsche Annington, had called off the IPO, only to relaunch it a week later but with a sharply reduced volume. It had been unable to attract sufficient investor demand at the original price range. The firm placed 34.85m shares in the IPO, giving it a market value of more than €600m.