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EFG says completes revamp after unit nets 145 mln Sfr in IPO
2012年10月18日 / 晚上6点00分 / 5 年前

EFG says completes revamp after unit nets 145 mln Sfr in IPO

* EFG Financial Products unit raises 75 mln Sfr with new shares

* Parent EFG bolsters capital to roughly 17 pct through move

* Financial Product shares priced 45 Sfr/share, mid-range

ZURICH, Oct 18 (Reuters) - Swiss private bank EFG said its initial public offering of its investment arm, set to net up to 145 million Swiss francs ($157 million), marks the final step in its restructure to focus on private banking.

The Zurich-based firm will hold on to more than 70 million francs from the IPO after reducing its stake in subsidiary EFG Financial Products, selling new and existing shares, to 25 percent from 58 percent.

Parent EFG has been undergoing a radical overhaul under Chief Executive John Williamson for the last 12 months.

This year, it closed offices in the Swiss cities of Sion and Lugano, sold its fund administration business to Credit Agricole arm CAECIS, and offloaded EFG Bank Denmark to SEB Wealth Management.

In recent weeks, EFG closed its Gibraltar office and sold Quesada, a Swedish wealth manager, to an undisclosed buyer.

EFG said while third-quarter revenue and costs were similar to the first half, spending to exit some activities would continue for “slightly longer than anticipated”.

The private bank said its revenue margin remained resilient, and the rise in net new assets was similar to the 3.2 percent growth seen in the first half, when EFG won 1.2 billion francs in fresh money.

In the IPO, EFG’s Financial Products unit issued nearly 1.67 million new shares, while parent EFG sold 1.27 million, plus an overallotment of 293,713 shares.

The IPO and share sale is meant to boost parent bank EFG’s capital adequacy ratio to around 17 percent of assets from 15.1 percent at the end of June.

EFG Financial Products’ IPO was “significantly” oversubscribed at the middle of its 40-50 franc range offered, coordinating investment bank Credit Suisse said.

The stock begins begin trading on the Swiss bourse SIX on Friday. ($1=0.9234 Swiss franc) (Reporting By Katharina Bart; Editing by Mike Nesbit)

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