Pandox Plans Stockholm IPO Valuing Firm at as Much as $2 Billion

Pandox AB, the Stockholm-based property owner with 104 hotels in its portfolio, said it plans an initial public offering in Stockholm in June that values the entire group at as much as 16.5 billion kronor ($2 billion).

Pandox set the price range in its listing at 100 kronor to 110 kronor a B-share, which would give the company a market capitalization of 15 billion kronor to 16.5 billion kronor, according to a statement on Monday. The first trading day on Nasdaq Stockholm is expected on June 18, the company said.

Pandox’s hotel-property portfolio of 104 hotels consists of about 22,000 hotel rooms in the Nordic region, Belgium, Germany, Canada and Switzerland. Its hotels, managed under different types of agreements, are marketed under brands such as Scandic, Hilton, Hyatt and Elite. The company, founded in 1995 and owned by Eiendomsspar AS, CGS Holding AS and Helene Sundt AS, said on May 26 it planned a 2015 listing in Stockholm.

“In light of the company’s growth since 2004, the ultimate owners wish to reduce Pandox’s share of their respective property and investment portfolios and make Pandox a listed company again,” according to the statement. The IPO “will expand Pandox’s shareholder base and enable Pandox to access the Swedish and international capital markets, which will support the company’s continued growth and development.”

Pandox plans to sell 35 percent of its total number of shares in the IPO, and a further 5 percent if an over-allotment option is used. The total value of the offering is 6 billion kronor to 6.6 billion kronor, if the over-allotment option is exercised in full. Swedbank Robur Fonder and AMF have agreed, subject to certain conditions, to buy 10.5 million shares each in the IPO, corresponding to 7 percent each of Pandox shares.

Chief Executive Officer Anders Nissen said Pandox is “well-positioned to benefit from both underlying market growth and organic growth from the refurbishments and repositioning of our hotel properties” and that “we look forward to returning to the stock market and welcome new shareholders.”

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