TALLINN - Executives of Tallinna Vesi (Tallinn Water), the water utility for the Estonian capital, said last week that they have presented the company to around 30 foreign institutional investors in the course of their roadshow that is still taking place.
A presentation in Tallinn last week was attended by about a dozen local institutional investors, as well as Latvian and Lithuanian investors, said Lauri Lind, head of the stock markets department at Hansabank, one of the managers of the initial public offering.
Promotional events continued this week throughout Europe.
Tallinn Water CEO Bob Gallienne told reporters that foreign investors tend to ask more general questions about the firm's activity and dividend policy, while so far there has been little feedback from investors as to their interest in buying and the price they would be willing to buy at.
Answers to these questions will come with the end of the subscription period next week, he said, which will close May 26. The price range for bids on Tallinn Water shares is 125 's 160 kroons (8 - 10.2 euros).
The final price will be announced May 27, and the shares should begin to be publicly traded June 1.
Hansabank said it was prepared to buy up to 1 million shares from the stock exchange if necessary to balance the market should the stock start falling. The bank won't pay more for the shares than the price determined in the course of the offering and reserves the right to resell the shares bought from the market to present owners of the company.
Tallinn Water's owners, the city of Tallinn and United Utilities Tallinn B.V., are selling up to 6 million shares, or 30 percent of the total outstanding stock.
