Spain's largest closely held real-estate company, Fadesa,
www.fadesa.es is to go public later this month, kicking off a new round of initial public offerings in Spain.
The offering, which could raise more than 400 million ($644 million) in Spain's first IPO in more than two years, will be an important test of investor appetite for new issues following the Madrid bombings of March 11.
Another test is slated to come with Telecinco, the Spanish TV broadcaster controlled by Italy's Mediaset.
"After an event like [the bombings], you tend to get increased volatility in the short term, and then markets go back to fair value," said Antonio Rodriguez-Pina, head of Credit Suisse First Boston in Spain. CSFB is one of the advisers on the Fadesa IPO, together with Morgan Stanley and Banco Bilbao Vizcaya Argentaria.
Despite a decline in share prices last month, the Spanish stockmarket is up 7 per cent this year. In addition, recent share offerings by already-listed Spanish companies have met with strong demand.
"After a long period of no IPO activity, a window has reopened. The market fundamentals look much better for sellers," said Michael Schaftel, head of European equity syndicate of Morgan Stanley.
Fadesa, which is recognised in Spain as the sponsor of first-division soccer team Deportivo de La Coruna, is one of the country's biggest developers of coastal property.
To promote its IPO, it has launched TV and print advertisements showing beachfront housing complexes, swimming pools and golf courses.
Strong demand for Spanish coastal property - with buyers from all over Europe - coupled with low interest rates has helped fuel double-digit increases in Spanish housing prices, which in turn have boosted profits and share prices of real estate companies.
Following the gains of Spain's socialist party, the PSOE, in last month's general elections, some industry observers have expressed concern that the incoming government's plans to increase housing subsidies could depress prices.
Fadesa plans to sell about 37 million shares or 33 per cent of the company.
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