The Stockholm market continues to provide returns to private equity investors with the listing of Swedish debt collector, Intrum Justitia. As with the flotation of Alfa Laval last month, Industri Kapital was the beneficiary. Priced at SEK 47 per share (euro5.1), above the midpoint of its SEK 36 to SEK51 range, the issue was 12 times oversubscribed and gave the company a market capitalisation of SEK 4 billion. The total value of the offering, comprising 31, 394,405 shares, was SEK 1.5 billion. The deal generated an IRR of around 30 per cent for Industri Kapital and a money multiple of 2.6.
Industri Kapital invested in the company in March 1998 when Intrum Justitia delisted from the London Stock Exchange. The company had been public for eight years and was also previously listed on the Luxembourg market. Industri Kapital’s 1997 fund and Synergy, a company linked to Bo Göransson, former chairman and CEO of Intrum Justitia, invested equally in the £133 million deal, which included debt of £15 million. Through the IPO Industri Kapital and Synergy have reduced their stakes in the company from 45 per cent to 25 per cent, management now holds around five per cent and new shareholders own the remainder. Industri Kapital is subject to a lock-in period of 180 days.
Carnegie and Enskilda Securities were lead managers and bookmakers and Cazenove was co-lead manager.
Intrum Justitia, which employs 2,600 people in 21 countries, offers domestic and international commercial and consumer debt collection services, as well as outsourcing and other credit management-related services. Since 1998 turnover has doubled and operating profits quadrupled, group revenues for last year were SEK2.321 billion. After the public-to-private Intrum Justitia appointed a new CEO, Peter Sjunnesson and new regional managers. The company acquired Dun & Broadstreet’s European receivables management services operation as well as some smaller interests, including a Spanish debt collection business at the beginning of 2002. Earlier in June Intrum Justitia announced a joint venture with Crédit Agricole Indosuez to purchase written-off consumer debt portfolios in the Nordic countries.
Other companies preparing to float on the Stockholmsbörsen include kitchen manufacturer Nobia, another Industri Kapital investment. Christian Salamon, director of Industri Kapital, said: “The successful IPOs of Alfa Laval and Intrum Justitia have opened the market for IPOs.” He believes the market is still challenging but says there is strong interest, from both domestic and international investors, in quality businesses. With Alfa Laval three-and-a-half times oversubscribed and Intrum Justitia 12 times oversubscribed he described the market as receptive.