DoBank, a leading Italian banking group specialized in managing non performing loans (former UniCredit Credit Management Bank or Uccmb, see here a previous post by BeBeez) controlled by Fortress Investments Group), is to list at the Italian Stock Exchange starting next July 20th after an institutional ipo will be closed on July 17th (see here the press release).
The offer, started last June 30th, consists in a sale of shares by Avio sarl, a company indirectly controlled by Fortress funds and incorporated under the laws of Luxembourg, which currently holds 97.81% of the company’s share capital (the remaining 2.19% is represented by treasury shares held by the company itself).
Citigroup, JPMorgan and UniCredit are acting as joint global coordinators and joint bookrunners. UniCredit is also acting as sponsor and Citigroup as stabilization agent. Rothschild is acting as financial advisor to Avio and the doBank.
The bank will float on the Italian Stock Exchange a 35.63% stake which might rise to 43.38% in the case of a complete extercise of the greenshoe option. After the offer Avio will lower its stake to 58.62% (or 50.1% in caso of complete exercise of the greenshoe option) .
The bank will start listing with a market capitalization between 653 and 802 million euros ad shares will be priced in a 8.35 to 10.25 euros price range, in line with market expectations that saw doBank to be valued at an equity value of more than 700 million euros.
doBank’s Q1 results show that the bank reached 45.17 million euros in revenues at the end of March 2017 with a 9.9 million euros ebitda from 8.3 millions in Q1 2016. In FY 2016 doBank had reached a 58 million euros consolidated ebitda with 206.2 million euros in revenues, comprised of 93% from revenues from servicing activities (92% as of March 31, 2017), 4% from ancillary products (3% as of March 31, 2017) and 3% from other secondary banking activities (5% as of March 31, 2017).
DoBank bought Italfondiario, the second independent credit servicer in Italy, last July. Sellers had been funds managed by Fortress itself (who owned an 88.75% stake in Italfondiario after having invested in August 2000 in the company for the first time) and Intesa Sanpaolo bank, owning the remaining 11.25% stake.
The deal gave birth to the biggest independent credit servicing group in Italy as far as doBank and Italfondiario were, respectively, number one and number two in PwC’s league table for assets under management on June 30th 2016. Both companies have the highest rating from Fitch (RSS1 and CSS1) and S&P’s (strong). The two companies will remain separated but will benefit from synergies.
Following the acquisition of Italfondiario in 2016, the doBank Group became the largest servicer specialized in the management of non-performing loans, with Euro 81 billion (in terms of gross book value) of loans under management as of December 31, 2016, more than 50% of the volume of the non-performing loans under management in the Italian independent servicing market and equal to approximately one-third of the total volume of non-performing loans in that market.