Amtel's IPO price lower than predicted, values company at $750 m

London -- Amtel-Vredestein has revealed the price of it's IPO share offer to be $11 each, well below the indicative range of $13 - $16 announced on 1 November. The company has also sold fewer shares than it expected.

In a statement the company claimed this values the company at $1100 million "calculated as equity value plus net debt", but a simple share capitalisation calculation appears to give a value closer to $750 million.

In a statement, the company said, "AV has issued, offered and sold 13,912,925 GDRs, representing 20.61 percent of AV's total issued share capital immediately after the Offering, in addition, the selling shareholders have collectively offered and sold 4,426,075 GDRs." Together the sales amount to 18.34 million shares. The company earns approximately $150 million from the sale.

On Sept 1, the company announced its intention to sell almost 20 million shares, including 7.7 million from private shareholders.

The shares start provisional trading today (14 November) under the symbol AMV on the London Stock Exchange. In the statement, Amtel said "Closing and settlement of the Offering are expected to be completed on November 17, 2005. The GDRs are expected to be admitted to the Official List of the U.K. Listing Authority at 08:00 London time on November 18, 2005."

Alexei Gurin, AV's Chief Executive Officer, commented: "Amtel-Vredestein N.V. is proud to announce that despite the reported negative results of one of our competitors during the introduction of the Company to potential investors, AV has successfully completed the initial public offering. Because of the strong interest shown by so many committed investors during our roadshow, we were determined to make our shares available to complete the placement and we are confident that we will create value for our shareholders going forward."

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Website of Amtel-Vredestein

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