ISS to Raise $1.5 Billion in IPO as Goldman, EQT Sell Stakes

ISS Holding A/S, the Danish facilities management company, plans to sell shares to raise 8 billion kroner ($1.5 billion) to repay debt, in the country’s biggest initial public offering in 20 years.

The IPO will consist primarily of an issue of new shares and will also involve a partial sell-down of stock by funds advised by Goldman Sachs Capital Partners (GS) and EQT Partners AB, ISS said. Owners Ontario Teachers’ Pension Plan and Kirkbi A/S, the investment company owned by Lego billionaire Kjeld Kirk Kristiansen, won’t sell shares, Copenhagen-based ISS said today in a statement.

“The intended IPO is expected to support our operational strategy, advance our public and commercial profile, provide us with improved access to public capital markets and a diversified base of new private and institutional shareholders, both in Denmark and internationally,” Chief Executive Officer Jeff Gravenhorst said in the statement.

The world’s largest cleaning-service provider will use the proceeds to pay down debt, it said. ISS had sales of 78.5 billion kroner last year, a 4.3 percent increase on 2012 on an organic basis, driven by western European growth of 5 percent and “double-digit” growth in Asia. Operating profit before items fell by 2.2 percent to 4.3 billion kroner. Organic growth excludes the effects of acquisitions and currency fluctuations.

The IPO is poised to be Denmark’s biggest since the government sold a stake in carrier company TDC A/S for 19.6 billion kroner in 1994. EQT and Goldman Sachs’s private-equity arm acquired ISS for 21.9 billion kroner in 2005.

The offering will consist of both new and existing shares. Nordea Bank AB, Goldman Sachs Group Inc. and UBS AG were appointed as joint global coordinators, ISS said. The three banks will also act as joint bookrunners, together with Barclays Plc and Morgan Stanley. (MS) Danske Bank A/S, SEB AB and Carnegie have been appointed co-lead managers. Lazard is acting as financial adviser to ISS.

To contact the reporters on this story: Frances Schwartzkopff in Copenhagen at fschwartzko1@bloomberg.net; Gelu Sulugiuc in Copenhagen at gsulugiuc@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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