Insurer Aviva said Monday it would float 42 percent of Delta Lloyd in Amsterdam next month in an initial public offering that values its Dutch unit at 2.6-3.1 billion euros (3.9-4.6 billion dollars).
Aviva, which first revealed plans for the partial flotation in August, added in a statement that it hoped to deliver gross proceeds of about 1.2 billion euros in what would be Europe’s largest IPO so far this year.
Delta Lloyd shares will begin trading on the Euronext Amsterdam market on November 3.
“This step, which will be the largest IPO in western Europe this year, will free up capital for us to use elsewhere and will give us the option of exploring further growth opportunities,” said Aviva Chief Executive Andrew Moss in the statement.
Delta Lloyd offers financial services including life insurance, general insurance, fund management and banking products, mostly in Belgium and the Netherlands.
The insurance giant will offer institutional and retail investors about 63.5 million ordinary shares at 15.50-19.00 euros each. Aviva will retain a 57-percent stake in Delta Lloyd, and 53 percent of voting rights.
“The IPO will enable Aviva to monetise part of its holding in Delta Lloyd, giving Aviva greater financial flexibility, including the option to explore balance sheet restructuring and further growth opportunities,” it added.
