Saxo Group Videos

ABN AMRO IPO shares around 40% undervalued and here's why

From bail out to billions in a fresh IPO, shares in the Dutch bank ABN AMRO are due to go on sale this week. The government of the Netherlands is selling off a 23% stake in the bank which it saved during the financial crisis seven years ago.

Saxo Bank's Head of Equity Strategy Peter Garnry has been analysing the bank's recent performance and comparing with more than thirty other European banks. He argues that the shares, based on the mid-price of the expected offering, will be around 40% undervalued.

The IPO values the bank at around EUR 17 billion with shares expected to be priced at between EUR 16 and EUR 20, and Peter explains why he is positive on the pricing up to EUR 25.

04:43 minutes
Tags: ABN Amro, bail out, bank, bank of england, banking, banking equity, banking industry, banking sector, banking system, banks, banks 2014, banks results, banks stocks, dutch bank, eq, eq3, equities, equities 2014, equities over valued, equities prices, equities saxo, equities strength, equities trading, equities v bonds, equity, equity analyst, equity bubble, equity clients, equity correction, equity decline, equity index, equity market, equity market 2014, equity markets, equity platform, equity portfolio, equity portfolios, equity research, equity rise, equity risk premium, equity risk premiums, equity strategy, equity trades, equity trading, equity us, financial crisis, holland, initial public offering, ipo, saxo, saxo bank, saxo tv, saxotv, share price, share trading, shares, shares 2014, shares and tapering, shares down, shares drop, shares drops, shares europe, shares or bonds, shares prices, shares up, shell, st, steen jakobsen, sterling, sterling dollar, stimulus, stock, stock market, stock markets, stock picks, stock price, stock prices, stock trading, stocks, stocks markets, stocks to watch, strategy, tradingfloor.com

Switch to