News on 18 October 2000
International serviced office provider Regus has announced
that its initial public offering shares will be priced at 260p per ordinary
share and £12.98 ($18.79) per American Depositary Share. As a result,
Regus will be value at £1.5bn.
As reported earlier, Regus filed a registration statement with the US
Securities and Exchange Commission and submitted price range listing particulars
to the UK Listing Authority (see News story).
127 m ordinary shares have been allocated to investors in the Offering.
95.8 m were sold by Regus, 15.6 m by affiliates of Apollo Real Estate
Investment Fund III LP and 15.6 m by affiliates of Deutsche Bank AG. The
two affiliates will also provide a greenshoe of up to 19.1 m ordinary
shares.
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Mark
Dixon
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Regus expects to receive proceeds, net of underwriting commissions
and expenses, of approximately £235m. £100m is to be used
to repay the outstanding amounts under Regus’ senior secured multi-currency
revolving facility. The remainder will be used to expand the Group’s
network of business centres and the funding of a loan by Regus worth £42m
which was used to purchase 16,265,000 shares.
Chief executive of Regus, Mark Dixon, said: "Successfully completing
our IPO on the London and NASDAQ exchanges is the end of the beginning
as far as Regus is concerned. Our task now is execution of our growth
plan for the benefit of shareholders, old and new."
The share dealings began yesterday morning (17/10/00) and trading is expected
to go unconditional on the 24th this month.
