EFG International Presses Ahead With Business Unit IPO As Overhaul Continues

Tom Burroughes

25 September 2012

Swiss-listed EFG International today announced it wants to go ahead with a planned share flotation of EFG Financial Products Holding, its structured investment service provider, as it continues to streamline operations and boost profitability.

The IPO will be held in the fourth quarter of this year, subject to market conditions, EFG International said in a statement.

The initial public offering will happen on the SIX Swiss Exchange. The move is part of a business review by EFG International of its operations as it has sought to shed underperforming activities and cut costs.

When the IPO is complete, EFG International will cut its stake in that business to no less than 20 per cent from 57 per cent. The move will boost EFG International’s core tier 1 capital stock.

“EFG International will continue to fully consolidate EFG Financial Products for accounting, regulatory supervision and regulatory capital purposes,” the firm said in a statement.

“The intention to IPO EFG Financial Products also reflects the progress made by EFG Financial Products in recent years; and the belief that it can benefit from a more independent positioning,” the statement added.