EQT’s Dometic valued at SEK 14.2bn in IPO

Dometic listed on Nasdaq OMX Stockholm at SEK 48 per share, just above the middle of its SEK 43-52 price range. The company raised SEK 4.6bn in the flotation.

A total of 97.75 million shares were offered in the IPO, corresponding to a 33% free float, while the GP's EQT V vehicle set aside an additional 5% of the total number of Dometic shares for potential overallotment. If the latter is used, the total free float will be 38% and the total value of the offering will increase to SEK 5.4bn.

EQT will remain a majority shareholder following the IPO, holding 57% of Dometic through its fifth fund, assuming the overallotment is not used.

Cornerstone investors AMF, Handelsbanken Fonder and Nordea Funds hold 3.5%, 3.5% and 2.8% of Dometic's shares, respectively, having subscribed ahead of the listing.

Jefferies International, SEB and Morgan Stanley acted as joint global coordinators and joint bookrunners. Carnegie and UBS were joint bookrunners and Handelsbanken was the co-lead manager.

EQT will also list hotel chain Scandic Hotels in Stockholm on Friday 27 November, which could reach a market cap of SEK 8bn.

Previous funding
The partial exit marks the first step in the wind-down of EQT's 13-year relationship with Dometic. EQT carved out Electrolux Leisure Appliances from its Swedish parent in 2002, renaming it Dometic Appliances.

Three years later, the company was sold to BC Partners in a secondary buyout, and began pursuing a buy-and-build strategy, which saw a number of subsequent bolt-ons.

Following a rebranding as Dometic Group in 2009, the company was taken over by Mizuho Corporate Bank after a covenant breach. Mizuho had provided the debt package for EQT's initial buyout in 2002.

EQT took ownership of Dometic again in 2011 for a reported SEK 12bn through the EQT V fund.

In 2014, the company bolted on US and Belgian recreational vehicle parts providers Atwood and Prostor.

Company
Solna-headquartered Dometic is a manufacturer of appliances for leisure vehicles, such as RVs, yachts, cars and trucks, as well as other applications.

The company's line of products include air conditioners, furnaces, awnings, vents, windows and doors, water heaters, toilets, refrigerators, cooking equipment, ovens and mobile coolers.

In the 12 months to 30 September 2015, Dometic had SEK 11.2bn in revenue, with EBIT of SEK 1.4bn. The company employs a staff of 6,369 and sells its products in nearly 100 countries.

Dometic's history stretches back to 1922, though its name originated in 1968 as the moniker for Swedish appliance company Electrolux's US leisure vehicle refrigerator division.

People
EQT partner Harry Klagsbrun led the deal for the GP. Roger Johansson is the CEO of Dometic.

Advisers
Vendor & Company – Lazard (Corporate finance); Vinge (Legal); Latham & Watkins (Legal).

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