Biggest Swedish IPO in 15 Years May Give Pandox $785 Million

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Pandox AB said the value of its initial public offering is 6.36 billion kronor ($785 million), making it Sweden’s biggest IPO since Telia AB’s listing in 2000. The shares rose as much as 7 percent.

Pandox, the Stockholm-based hotel-property owner, set the final price in its listing at 106 kronor a B-share, compared with a previously announced range of 100 to 110 kronor a share, according to a statement on Thursday. Pandox will sell about 52 million shares, which rises to 60 million shares if an over-allotment option is exercised in full.

The 6.36 billion-krona total value of the offering, based on the over-allotment option being exercised in full, compares with the 76.5 billion kronor raised when the Swedish government listed phone company Telia in June 2000, Scania AB’s 18.3 billion kronor in 1996, Eniro AB’s 6.1 billion kronor in 2000 and the 5.7 billion kronor raised by Com Hem AB in 2014, according to data compiled by Bloomberg and Nasdaq Stockholm.

The shares rose as much as 7 percent to 113.4 kronor in Stockholm trading, and gained 3.8 percent to 110 kronor as of 9:11 a.m. local time. They opened trading at 111.5 kronor.

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 Hilton, Hyatt, Scandic 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.

Offering Over-Subscribed

“The response from investors has been very positive both in Sweden and abroad and we look forward to, as a listed company, continuing to build on our platform,” Pandox Chief Executive Officer Anders Nissen said in the statement. The offering was over-subscribed multiple times.

The offering, which comprises 40 percent of the total number of shares if the over-allotment option is used, values the company at 15.9 billion kronor. Swedbank Robur Fonder and AMF have agreed, under certain conditions, to buy 10.5 million shares each in the IPO, corresponding to a 7 percent stake each. About 6,700 investors have been alloted B-shares in the IPO.

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