The Netherlands-based ABN AMRO Bank had its IPO on the Dutch equity market this past Friday. The bank returned to the markets after a break of eight years when it was taken over in a complex deal. Here is an excerpt from an FT article:
ABN Amro shares rose 3.5 per cent on Friday after the Dutch government sold a fifth of its stake in the biggest initial public offering of a European bank since before the financial crisis.
The IPO, raising as much as €3.8bn for the government, marks the return of ABN to the stock market eight years after it was taken over in a record €71bn deal that led to the collapse of two of its three acquirers: Royal Bank of Scotland and Fortis.
The shares floated at €17.75 and rose in early trading to €18.37. That valued the bank at almost €16.7bn, which is well below the €24bn of taxpayer money used to bail out the Dutch banking activities of ABN and Fortis after the fateful 2007 deal.
ABN has been pitched to investors as a defensive yield stock that could be attractive in the low interest rate environment. It has promised to pay out 40 per cent of its profits in dividends until 2017 and half of them after that.
Analysts estimate it will make a net profit of about €2bn this year and pay a €0.85-per-share dividend, representing a yield of about 5 per cent.
Source: ABN Amro rises 3.5% as it returns to market, Financial Times, Nov 20, 2015
The shares trade on the Amsterdam Exchange under the ticker ABN.
For in Q3, 2015 ABN reported a net profit of EUR 509 million.
For more information checkout ABN Amro Investor Relations Site.
As a global bank ABN has a strong presence in many countries including the UK and the continent of Asia. With an excellent historical performance and the global reach the stock is worth a look especially with a nice dividend yield.
Disclosure: No Positions