Portugal raises EUR578M in first IPO of its stake in postal service

December 3
7:51 AM 2013

The Portuguese government is raising EUR578 million (USD783 million) from the disposal of its controlling stake in Lisbon-based CTT-Correios de Portugal SA. A report by Bloomberg said Portugal is exiting from its 70% stake in the country's 493-year-old postal service after setting the price at the top of its announced range. 

According to the report, the government is selling a total of 105 million shares of CTT. Of these, 21 million will be sold to individual investors and the remainder will go to institutional investors. 

Bloomberg said  the shares are priced at EUR5.52 apiece, apart from the 5.25 million shares reserved for CTT employees. Shares allocated for the postal service's employees are priced at EUR5.24 per share.

Portugal had set a price range of EUR4.10 to EUR5.52 per share, putting the value of the mail service at as much as EUR828 million. This includes a 30% stake that state holding company Parpublica will retain, the report said. 

The CTT initial public offering is the country's first listing in the last five years after UK sold a majority stake in Royal Mail in October at a price that some British legislators said was too low, Bloomberg said.  

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