Com Hem Narrows Cable IPO Price Range Before Stockholm Debut

Com Hem AB, the Swedish cable operator planning the Nordic region’s second-largest initial public offering this year, narrowed its offer price toward the higher end of an earlier range of projections.

The shares will be priced at 55 kronor to 60 kronor apiece, according to sales terms seen by Bloomberg News. That compares with an earlier range of 44 kronor to 62 kronor. At 60 kronor, Com Hem would raise 7.7 billion kronor ($1.2 billion). The stock will start trading in Stockholm June 17.

Chief Executive Officer Anders Nilsson plans to use the proceeds to repay debt as Com Hem added new businesses to combat stagnating sales. The cable provider is increasing broadband speeds over its network and has struck agreements with TiVo Inc. and Netflix Inc. to offer video on demand. Its acquisition of Phonera Foretag AB this year added products for small businesses.

The cable carrier, which said it connects to about 39 percent of homes in Sweden, reported first-quarter underlying Ebitda of 545 million kronor. Sales were little changed at 1.12 billion kronor as the number of unique subscribers increased 1.8 percent to 838,000, it said in a May 2 statement.

BC Partners, which acquired Com Hem in 2011 for 1.7 billion euros ($2.3 billion), won’t sell its shares as part of the offering.

JPMorgan Chase & Co., Morgan Stanley and Nordea Bank AB are managing the transaction.

To contact the reporters on this story: Ruth David in London at rdavid9@bloomberg.net; Adam Ewing in Stockholm at aewing5@bloomberg.net

To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net Tom Lavell

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