Sweden's EQT up 25% on market debut after 1.2 bln euro IPO

Credit: REUTERS/Esha Vaish

Shares in Swedish buyout firm EQT AB rose 25% on their market debut in Stockholm on Tuesday, adding nearly 1.5 billion euros to the company's market value within minutes and reviving sentiment towards Europe's battered IPO market.

By Abhinav Ramnarayan

LONDON, Sept 24 (Reuters) - Shares in Swedish buyout firm EQT AB EQTAB.ST rose 25% on their market debut in Stockholm on Tuesday, adding nearly 1.5 billion euros to the company's market value within minutes and reviving sentiment towards Europe's battered IPO market.

EQT said earlier on Tuesday it would sell around 190.6 million shares at 67 Swedish crowns ($6.89) each in an initial public offering (IPO), raising 12.8 billion Swedish crowns ($1.32 billion), the equivalent of 1.2 billion euros.

That gave the company a market capitalisation of around 63.8 billion Swedish crowns, or 6 billion euros.

The shares began trading at 80.50 Swedish crowns and rose to 84 Swedish crowns by 0730 GMT, boosting the market cap to around 80 billion Swedish crowns, or around 7.5 billion euros.

"The offering attracted strong interest from both Swedish and international institutional investors as well as the general public in Sweden," the company said in a statement, adding that the deal was more than 10 times over-subscribed.

The company launched the offering of a 20% stake earlier this month at a price range of 62-68 Swedish crowns. It received enough orders to cover the deal within two hours.

JP Morgan and SEB were global coordinators and joint bookrunners along with Goldman Sachs, Morgan Stanley, Nordea and UBS.

($1 = 9.7178 Swedish crowns)

($1 = 9.7237 Swedish crowns)

(Reporting by Abhinav Ramnarayan, Additional reporting by Izabela Niemiec in GDYNIA, editing by Sinead Cruise and Kirsten Donovan)

((Abhinav.Ramnarayan@thomsonreuters.com; 0044 751 745 1044;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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