In an intention to float document on Monday, Epic Suisse said the IPO would consist of around Sfr200m of new shares. The company’s founding Greenbaum family and major investor Alrov Group, the Israeli real estate developer, will also sell some of their shares.
UBS is global coordinator on the IPO, Berenberg and Zurcher Kantonalbank are bookrunners.
Once listed, Epic Suisse will target a fixed dividend of Sfr2.60 a share for its 2020 financial year, and will target a payout of at least 80% of funds from operations after that.
Epic Suisse primarily invests in commercial real estate, such as offices, as well as "food-anchored retail and logistics properties", where the it sees opportunities for growth. It has a development pipeline of more than 175,000 square meters.
At the end of June, Epic Suisse’s portfolio was valued at Sfr1.3bn, with 24 properties under management located in the main economic centers of Switzerland, such as Geneva and Zurich.
The portfolio generated Sfr27.3m of net rental income in the first six months of 2020, equivalent to a yield of 4.2% on the fair value of its properties.
Epic Suisse said it intends to use the proceeds of the IPO to finance growth opportunities, including future acquisitions. The money raised will also be used for general corporate purposes, including repaying bank debt and shareholder loans.
“The envisaged IPO on SIX Swiss Exchange is the next logical step in Epic’s development,” said Roni Greenbaum, co-founder and chairman of Epic Suisse,in a statement. “Thanks to our sound and well diversified portfolio backed by a highly resilient tenant base, we have weathered the Covid-19 pandemic with only a minor impact on rental income and profitability.”
Swiss stocks have emerged has some of the best performing in Europe during the pandemic. The country’s benchmark SMI index is down just 1.8% this year, compared to an 11.4% drop in the EuroStoxx 50 and a 20% fall of the FTSE 100.