Matas A/S, the drugstore chain bought by CVC Capital Partners Ltd. in 2007, rose on its Copenhagen debut after becoming Denmark’s first initial public offering through a private-equity firm in almost three years.
The shares rose as much as 7.8 percent and were up 6.1 percent at 122 kroner as of 9:08 a.m. in the Danish capital. That gave the Alleroed, Denmark-based company a market value of 5 billion kroner ($875 million). The IPO price of 115 kroner compared with an initial range of 100 kroner to 120 kroner.
“It’s an attractive valuation and it seems the owners didn’t want to price it too tightly as they wanted a good debut,” Jonas Guldborg Hansen, a consumer analyst at Jyske Bank A/S, said by phone. Hansen, who’s based in Silkeborg, Denmark, recommends that investors buy the stock and has a price estimate of 140 kroner a share.
Matas, which sells drugs and beauty products at 293 Danish outlets, is Copenhagen’s first private-equity IPO since Axcel A/S sold jewelry maker Pandora A/S on the stock market in October 2010. Matas’s sellers, a unit of London-based CVC and Materialisternes Invest ApS, will keep a 38.9 percent stake if over-allotment options are fully exercised, the company said.
Matas said it received “strong interest” from Danish retail investors during the offering. The owners allocated about 20 percent of the offered shares to retail buyers and the rest to Danish and international institutional investors.
Morgan Stanley and Nordea Bank AB were joint global managers in the sale.