Sentica's VMP closes IPO public offering

Greg Gille
15 June 2018

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VMP Group, a Finnish HR and recruitment business, has closed the subscription period for its public offering due to oversubscription, less than a year after being acquired by Sentica.

The institutional and personnel offering will continue based on the terms and conditions of the IPO. The final number of shares offered in the listing and the final subscription price are expected to be announced around 18 June.

VMP announced its intention to float on Nasdaq Helsinki earlier in June. The preliminary range was set at €4.50-5.75, with a market cap of €69.9-79.7m assuming the overallotment option is exercised in full.

The company is aiming to raise €30m in gross proceeds. Current shareholders (including Sentica) will not sell shares, and committed to subscribe for a total of €7.48m worth of shares.

The IPO comes less than a year after Sentica bought the business. The Finland-based private equity investor acquired a majority stake in the HR and recruitment business in September last year, with the founding family and the current management retaining a minority stake.

Sentica deployed capital from its Sentica Buyout V fund, which held a final close on €185m in April 2017. The vehicle follows the strategy of its predecessors, investing in companies with revenues of €10-100m across all sectors.

Funds managed by Sentica owned 60% of the company pre-IPO. Assuming the offering goes through as planned, the GP will be left with a 39% stake in the business.

Danske Bank is acting as lead manager.

Founded in 1988 in Turku, Finland, VMP is a Finnish family business that comprises five HR and recruitment companies. It operates from 100 offices in 50 locations across Finland, Sweden, Estonia and Romania. The company generated a turnover of €109m in 2017 with EBITDA of €9.3m.