The Stockholm market continues to provide returns to private equity investors, most recently including 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 (e5.1), above the midpoint of its SEK 36 to SEK51 range, the issue was 12 times oversubscribed and gave the company a market capitalization of SEK 4 billion. The total value of the offering, comprising 31.4 million shares, was SEK 1.5 billion. The deal generated an IRR of around 30% for Industri Kapital and 2.6 times investment.
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 Gransson, former chairman and CEO of Intrum Justitia, invested equally in the GBP133 million deal. Through the IPO, Industri Kapital and Synergy have reduced their stakes in the company from 45% to 25%, and management now holds around 5% and new shareholders own the remainder. Industri Kapital is subject to a lock-in period of 180 days.
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, operating profits quadrupled and group revenues for last year were SEK 2.321 billion. After the public-to-private, Intrum Justitia appointed a new CEO, Peter Sjunnesson and new regional managers, later building up through acquisitions and joint ventures.
Another company preparing to float on the Stockholmsbrsen is 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, like Alfa Laval and Intrum Justitia.