(Bloomberg) -- Swedish landlord SBB plans to sell as much as 4 billion Swedish kronor ($390 million) worth of stock in its residential unit in an effort to shore up its balance sheet.

The company plans to offer a maximum of 88 million shares in Sveafastigheter AB in a contemplated initial public offering, with pricing estimated in the range of 39.5 kronor to 45.5 kronor each, according to a statement on Monday. That corresponds to 44% of the total number of shares in the residential unit, which is slightly less than its previous guidance.

Samhallsbyggnadsbolaget i Norden AB — as the company is formally known — has been working on a plan to spin off the housing division for the past year as part of a broader strategy to split the group into three along its community, education and residential portfolios. Chief Executive Officer Leiv Synnes was brought in last year to lead the real estate group after its share price went into freefall following a surge in borrowing costs and a spate of costly credit-rating downgrades.

SBB said it will use proceeds from the sale to improve its financial position. Still, Sveafastigheter will continue to be one of its core holdings, SBB said.

SBB has already sold other stakes to boost its cash levels and trim its debt pile. A deal was struck with Canada’s Brookfield Asset Management Ltd. for its eduction unit, Nordiqus AB. Castlelake LP and Morgan Stanley have also bought assets from the firm. 

The offering values Sveafastigheter at about 7.9 billion kronor to 9.1 billion kronor, the residential company said in a separate statement. That means it will become Sweden’s largest listed housing company with roughly 14,500 apartments under management and some 7,900 apartments in project development or under construction.

--With assistance from Stephen Treloar and Christian Wienberg.

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