Procuritas to net 8x on Pierce IPO

Harriet Matthews
26 March 2021

Tweet
Facebook
LinkedIn
Google plus
Send to

Online motorcycle parts and accessories retailer Pierce, a portfolio company of Procuritas, has listed on the Nasdaq Stockholm.

The company announced its intention to list on 8 March 2021.

The IPO values the company at SEK 64 per share, and comprises 16,339,904 shares, of which 5,468,750 are newly issued and 10,871,154 are being sold by the company's shareholders. This corresponds to a market capitalisation of approximately SEK 2.54bn.

Several investment funds have agreed to acquire shares with an aggregate value of approximately SEK 460m, corresponding to 18% of the outstanding shares in Pierce, according to the same statement.

At the time of publication, shares were trading at SEK 69.91 apiece.

The offering will comprise a total of 18,790,888 shares, provided that the overallotment option is exercised in full, meaning the IPO will represent around 47% of Pierce's shares with a total value of SEK 1.203bn

The company will earn proceeds of SEK 350m prior to transaction costs.

At the proposed pricing, the IPO will equate to returns of 8x for Procuritas and its investors, a source familiar with the situation told Unquote.

Procuritas is selling its shares via its PCI V Co-investment vehicle; it acquired Pierce via its flagship fund in 2014.

Carnegie Investment Bank is the sole global coordinator and joint bookrunner, and Nordea Bank is joint bookrunner.

Click here to read an analysis of IPOs in the Nordics region on Unquote.com.

Previous funding
Procuritas acquired Pierce in May 2014 via Procuritas Capital Investors V, which held a final close in June 2012 on €200m. The company generated EBITDA of SEK 21.7m and revenues of SEK 249m in 2014.

Company
Founded in 2009 and headquartered in Hägersten, Pierce is an online retailer that sells motorcycle parts, equipment and accessories across 18 countries, with more than one million products in its catalogue. The company reported revenues of SEK 1.523bn and adjusted EBIT of SEK 97m in 2020 and has more than 400 employees.

People
Pierce – Hendrik Zadig (CEO).
Procuritas – Matthias Feiff (co-managing partner).

Advisers
Company – Gernandt & Danielsson Advokatbyrå (legal).
Joint Bookrunners – White & Case (legal).