Christian Hansen Holding A/S, the Danish maker of food ingredients owned by private-equity firm PAI Partners, has received orders for all the stock on sale in its 6.5 billion kroner ($1.1 billion) initial public offering, according to two people familiar with the matter.
The Horsholm, Denmark-based company is selling 55.8 million shares at 87 kroner to 117 kroner apiece. It has received enough demand to price the deal around the middle of the range, said one of the people, who declined to be identified because the information is private.
The offering is coming after at least 20 companies worldwide postponed or withdrew IPOs in May as the European debt crisis sent the MSCI World Index of developed-market stocks down 9.9 percent. Coal India Ltd.’s $2.8 billion initial sale may be delayed by at least two months to September, two people with knowledge of the sale said today.
“We’ve seen overwhelming interest from both domestic and international investors,” said Michael Knudsen, a spokesman for Christian Hansen in Horsholm. “It’s a tough market but we are a robust and defensive business.” He declined to say how many orders the company had received.
Credit Suisse Group AG of Zurich and New York-based JPMorgan Chase & Co. are managing the sale, along with Morgan Stanley, SEB Enskilda Equities and Danske Markets Equities.
Christian Hansen, a maker of natural ingredient solutions such as colors and enzymes, reported in April that earnings before interest, taxes, depreciation and amortization rose 30 percent to 78 million euros in the six months through February. Revenue in the period totaled 256 million euros ($313 million).
The company will be valued at 1.6 billion euros to 2 billion euros after the IPO, according to terms of the sale obtained by Bloomberg News. That’s 10.26 times to 12.82 times Ebitda, based on the company’s six-month earnings through February. Companies in the Copenhagen OMX 20 Index have an average price-to-Ebitda ratio of 8, Bloomberg data show.
PAI paid about 1.1 billion euros for Christian Hansen in 2005. It will retain a stake of about 50 percent in the company after the IPO, according to the terms of the offering.
While private equity-led IPOs in Europe stumbled during the first two months of 2010, initial sales from Unterfoehring, Germany-based Kabel Deutschland Holding AG and Brenntag AG of Muelheim, Germany, that were backed by buyout firms in March raised almost twice as much as the biggest U.S. deals of this year, data compiled by Bloomberg show.