EFG International's structured products arm, EFG Financial Products Holding AG, has today announced its initial public offering (IPO) on the SIX Swiss Exchange comprising a base offering of up to 2,937,137 registered shares with a nominal value of CHF2.00 (€1.6) per share.

This base offering consists of 1,666,665 new registered shares to be issued by EFG Financial Products and up to 1,270,472 existing registered shares offered by EFG International.

Jan Schoch, EFG Financial Products chief said that the initial public offering has been an objective of both EFG International and the founding partners since EFG Financial Products commenced operations in 2007.

"It is a reflection of how far the business has come and we are now established as one of the leading providers of structured investment products in the Swiss market," he said. "We are excited about the benefits of the IPO in terms of our future development. A more independent setup will be helpful in relation to our white-labelling strategy while the proceeds from new shares being issued will support our growth initiatives and strengthen our capital base."

This move by EFG International will reduce its stake from about 58% to not less than 20%. EFG International has agreed to a lock-up of its remaining stake in EFG Financial Products, ending twelve months after the first day of trading.

Upon successful completion of the offering, the issued share capital of EFG Financial Products will consist of 6,666,665 registered shares.

The price range per registered share being offered in the IPO will be CHF40 (€33) to CHF50 (€41). Including existing and newly issued shares, this implies a future market capitalisation of EFG Financial Products in the range of approximately CHF267m (€220m) to approximately CHF333m (€274m).

Book-building begins on 8 October and is expected to end on 18 October. The final offer price is expected to be published on 19 October 2012 before the start of trading.

Listing and commencement of trading in shares on the SIX Swiss Exchange is expected on 19 October.