Sweden's Sveafastigheter prices IPO at bottom of range (updated)

Sveafastigheter publ AB

18/10/2024 07:07

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       OSLO, Oct 18 (Reuters) - Swedish residential real estate
group Sveafastigheter, a spin-off from landlord SBB  SBBb.ST ,
priced its shares at 39.50 crowns in an initial public offering
on Friday, the bottom of its touted range.
    The IPO gave Sveafastigheter a market capitalisation of 7.9
billion Swedish crowns ($750.39 million), the company said in a
statement.
    It had offered to sell the new equity at between 39.5 crowns
and 45.5 crowns per share.
    Sveafastigheter, which owns apartments in Sweden worth 27.5
billion crowns, announced last month it planned to list on the
Nasdaq First North Premier Growth Market.
    The stock makes its debut on Friday at 0700 GMT.
    The total value of the share offering, including an
overallotment option, amounted to 3.5 billion crowns, of which
the overallotment represented about 500 million, the company
said in a statement.
    The transaction will allow SBB, which has struggled with
high debt and soaring interest rates, to free up capital over
time by reducing its shareholding in Sveafastigheter, analysts
have said.
    It was SBB's second spin-off this year following the initial
public offering in April of Norway's Public Property Invest
(PPI)  PUBLI.OL .
    While SBB's share price has risen this year by 25%, it is
still down by around 90% from its 2021 peak.

 (Reporting by Terje Solsvik, editing by Stine Jacobsen and
David Evans)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70;))