Tuesday, 27 October 2015 - 10:39
ABN Amro IPO planned for 2015 on Euronext Amsterdam; approx. €17 per share
ABN Amro's IPO will happen before the end of the year if all goes according to plan. The relaunch is planned to be on the Euronext Amsterdam. The initial public offering brings to a close a tumultuous eight-year period at the Dutch bank which saw board members anger politicians and citizens alike just last year by approving a 20 percent salary increase for 100 top executives, in an attempt to sidestep a cap on banker's bonuses introduced in 2015. The introduction rate per share has not been announced yet, but should be around 17 euros, assuming a total of 912 million shares and a yield of more than 15 billion euros, ANP reports. The bank plans to pay half of financial year 2017's profits as dividend, based on the assumption that the Dutch economy will continue to recover and the bank's costs can further be reduced. Even before the official announcement, the bank's IPO was known as one of the most austere IPO's ever, with no staff shares, no fees for accompanying investment bankers and not advertisement campaign. On Tuesday ABN Amro and NLFI - the administrator of the state shareholdings in the financial sector - announced in a statement that the IPO will comprise of only a placement of existing shares certificates. The costs of the first part of the IPO is expected to amount to 9.5 million euros, according to Finance Minister Jeroen Dijsselbloem. Here follows a short summary of the Bank's activities that led to this point, according to NU. ABN Amro was bought by RBS, Fortis and Banco Santander in 2007 for 72 billion euros. In 2008 the credit crisis hit the Dutch financial sector and Fortis ended up on the verge of collapse. In October of that year the Dutch government bought Fortis Bank Nederland, including the Dutch parts of ABN Amro, thereby nationalizing both banks. In July 2010 ABN Amro Bank and Fortis Bank Nederland merged into just ABN Amro. In August 2013 the government announced that ABN Amro will eventually return to the IPO. The government expects to make about 15 billion euros from the IPO. In December of that year, the Supreme Court found Fortis guilty of mismanagement during the purchase of ABN Amro. In March of this year, a large amount of controversy erupted regarding ABN Amro's plan for 20 percent salary increases for top executives. The bank eventually decided against the wage increases and apologized, pleasing the Tweede Kamer, lower house of parliament. But the decision on when to return the bank to IPO was still postponed. There was also some controversy surrounding the ABN Amro Dubai branch and employees violating internal rules. Earlier this month Minister Jeroen Dijsselbloem announced that an IPO of the first 15 to 20 percent of ABN Amro shares is still possible before the end of the year. A week later he stated that he is keeping a close eye on the financial market.