Spanish property developer, Metrovacasa, has delayed it’s planned stock market flotation by one day and has cut it’s listing price without giving any reason.
In a statement to the market regulators, Metrovacasa who owns Spain’s largest land bank announced on Thursday evening that it was cutting it’s listing price from € 18,00 to € 19,50 to € 16,50 to € 17,00 per share in a move which is seen as negative for the real estate sector which is currently one of the most active for Spanish investors.
The assets of the company were originally valued at € 2.69 billion. The new listing price values the company at just € 2.57 billion.
Construction of residential homes in Spain is hotting up with investment from abroad pouring into coastal resorts and Spanish cities. The Spanish property market is seeing strong recovery following the burst of the property bubble a decade ago which left developers and banks with bad loans.
Santander and BBVA will remain the majority shareholders of Metrovacasa whom they took over in 2009. They are offering the shares together with Deutsche Bank, Morgan Stanley, Goldman Sachs and Societe Generale.
Metrovacasa will now list on 6th February 2018.