Shurgard Self Storage Europe Ltd., Europe's largest owner of self-storage units, said Wednesday that it plans to raise as much as 752 million euros ($1 billion) in an initial public offering.
Shurgard Europe, which was acquired last year by Glendale-based Public Storage Inc. for $5 billion, said it would offer 43.6 million shares priced between 12.50 euros to 15 euros ($16.90 to $25.25) per share on the Brussels Stock Exchange.
The company also said it is planning to offer an additional 6.54 million shares if there is sufficient demand. The offering will value Shurgard Europe at as much as 1.4 billion euros ($1.9 billion).
Public Storage will own 52 percent of Shurgard after the IPO; if the second offering is made, it will own 44 percent.
Shurgard said it plans to use the proceeds to fund developments and to repay debt. Merrill Lynch & Co. and Morgan Stanley are managing the share sale. The offer closes on June 20 with shares to start trading on the Euronext Brussels exchange starting June 22.
Shurgard owns 167 self-storage centers in seven European countries and said it plans to develop another 16.
Shares in Public Storage fell $1.17, or 1.3 percent, to $88.21 in afternoon trading Wednesday on the New York Stock Exchange.
For reprint and licensing requests for this article, CLICK HERE.