Share subscription of Noratis AG has started today and is expected to last until 27 June, Deutsche Börse announced earlier today. The portfolio developer of real estate plans its listing in the Frankfurt Stock Exchange’s Scale segment on 30 June.
According to information provided by the company, the Noratis AG is a portfolio developer of residential real estate. The company located in Eschborn near Frankfurt acquires properties with development potential across Germany, mostly housing estates, employee housing and quarters from the 1950s to 1970s in cities with more than 10,000 inhabitants or on the outskirts of urban areas. After acquisition, Noratis performs an intensive value enhancement of the properties and subsequently sells them in block sales or individually as condominiums. Since 2014, Noratis has successfully completed 14 projects with more than 1,300 residential units. In fiscal year 2016, the company generated revenues of €44.6 million.
DirectPlace will also provide its support in the share subscription. Deutsche Börse’s subscription functionality is intended to enable companies to tap into additional investor groups such as family offices, asset managers and retail investors prior to the IPO. This gives retail investors the opportunity to place buy orders through their custodian bank during the subscription phase. This was typically only possible after placement.
Via DirectPlace, orders are automatically forwarded to a central order book, which the issuer together with the bank acting as lead manager can view at any time. The issuer then decides which orders will be allocated. Due to the fact that all German banks and also a large number of international banks are connected to the Frankfurt Stock Exchange’s trading system, almost any investor can subscribe in the pre-IPO stage. Investors can find information on the transaction as well as the securities prospectus at www.boerse-frankfurt.de.
Currently 44 equities and 13 corporate bonds are listed in Scale. Company admission for the segment includes meeting minimum requirements on key financial figures and cooperating with a Deutsche Börse capital market partner that checks the company’s suitability for the segment and also oversees companies after their IPO. Research reports commissioned and paid for by Deutsche Börse and prepared by Edison Investment Research and Morningstar are also mandatory. The Scale All Share Index launched in mid-March tracks all Scale-listed shares.