NN Group IPO: Shares in ING insurance arm get off to a strong start
Shares in ING Group’s insurance spin-off NN floated on the Amsterdam stock exchange yesterday, rising 6.3 per cent above the offer price during the day’s trading.
ING announced ahead of the float that it would increase the number of shares available to buy by 10 per cent to 77m due to “significant” investor demand. The initial public offering priced NN Group at €20 per share in the mid-range, with an overall value of around €7bn.
The IPO of ING’s insurance arm is Europe’s largest so far this year and the parent group said it expected the offering to raise around €1.5bn. The proceeds of the sale would be used to pay down debt, ING said.
The company was forced to sell off NN Group following a bailout by the Dutch government in the wake of the global financial crisis in 2008. ING must sell at least 50 per cent of NN by 2015 and be rid of the arm entirely by 2016.