Dutch financial company ING raises €1.54bn from sale of stake in insurer

ING, the biggest Dutch financial services company, raised €1.54bn from the sale of shares in its insurer NN, the second-biggest initial public offering in Europe this year.

The sale of 28.6% of NN, with operations in Europe and Japan, brings ING closer to the end of a restructuring programme imposed by European Union regulators following a 2008 rescue from the Netherlands. It will use the proceeds to pay debt and further unwind into a bank and insurer.

“Today’s announcement marks a very important event for ING and underscores again that the company will soon complete its restructuring story,” said Lemer Salah, an Amsterdam-based analyst at SNS Securities. “We remain bullish on the stock given its numerous positive triggers and strong market position in Europe.”

JPMorgan Chase&, Morgan Stanley, Deutsche Bank and ING managed the NN offering. It is Europe’s second-biggest IPO this year behind a sale by AA Ltd, according to data compiled by Bloomberg.

ING had said that it would offer 70 million NN shares for €18.50 to €22 apiece. It increased the offering to meet “significant investor demand”, according to a statement yesterday. The offer price values NN at €7bn.

NN was the biggest life insurer in the Netherlands, based on 2012 gross written premiums, and the largest provider of mandatory pensions in Poland and Romania, according to a prospectus published on June 17.

Operating profit before taxes in the ongoing businesses was €905m last year and €295m in the first quarter. NN plans to expand earnings on that basis by 5% to 7% on average in the medium term and pay a dividend of 40% to 50% of the result from 2015, according to the document. The firm plans a first €175m payout to shareholders over the second half of this year.