Greece on Thursday will launch an initial public offering (IPO) for a 30% stake in Athens International Airport, a sale which along with a company dividend could yield up to 1.2 billion euros ($1.3 billion) for the state, according to sources.
The country is selling 90 million shares, through a combined offering to Greek and foreign investors and existing shareholders, in its biggest IPO after its 2010-2018 debt crisis.
Athens International Airport, the operator of Greece's biggest airport, has set the price range for its IPO at 7.0 to 8.2 euros ($7.62 to $8.92) per share, the country's privatisation agency said on Wednesday
The IPO will run from Jan. 25 to Feb. 1 and the final pricing will be determined following the six-day book-building period.
The listing on the Athens Stock Exchange is expected to take place in February and the company's free float is expected to be about 19%.
The Greek state expects to rake in up to 1.2 billion euros from the sale and a large company dividend paid as part of the deal, sources familiar with the matter told Reuters.
Athens International Airport has agreed to pay shareholders a 685 million-euro dividend in connection with the IPO, more than half of which will go to government entities, one of the sources said, requesting anonymity as the information is not yet public.
AviAlliance, which holds a 40% stake in the airport, has agreed to buy a further 10% of the lucrative asset at a premium over the IPO price, as a cornerstone investor.
Greece could raise more than 1 billion euros in proceeds from the dividend, the IPO and the cornerstone investment, the sources said.
Greece is heavily reliant on tourism and Athens airport handled more than 28 million passengers last year, accounting for 35% of passenger traffic through all the nation's airports.
($1 = 0.9189 euro)
