EQT and Accent's Scandic Hotels underwhelms in SEK 6.9bn IPO

Mikkel Stern-Peltz
02 December 2015

Tweet
Facebook
LinkedIn
Google plus
Send to

EQT- and Accent Equity Partners-owned Nordic hotel group Scandic Hotels was valued at SEK 6.9bn in its Stockholm IPO, pricing near the bottom of its initial range.

A SEK 66-81 price range for Scandic Hotels had been set ahead of the listing, giving the company a total market value of between SEK 6.8-8bn. In the first hour after trading began, the share price had dropped as low as SEK 62.50, before rebounding slightly to around SEK 64 per share.

Scandic will receive proceeds of around SEK 1.5bn from the IPO, minus SEK 95m in deal fees, while the total value of the shares in free trade is approximately SEK 3.4bn.

After the listing, 45% of the company will be in free float, with a greenshoe option allowing for a further 14.2% of Scandic shares to be allocated in the next 30 days.

Following the listing, Accent and EQT will retain a combined 50% stake in the company through the joint vehicle Sunstorm Holding. Prior to the IPO, EQT was the majority investor through the holdco with an 86% stake in Scandic, while Accent held 12%. The GPs invested through the EQT V and Accent Equity 2003 vehicles.

Swedish family office Provobis acquired 5% of the company in the offering, having committed ahead of public trading, with an option to buy an additional 2.5%.

Morgan Stanley and SEB were joint global coordinators and bookrunners for the listing. Deutsche Bank and ABG Sundal Collier were joint bookrunners.

Previous funding
EQT and Accent's exit comes eight years after the GPs jointly acquired Scandic in a €833m carve-out from the Hilton Hotels Group in March 2007.

Company
Scandic is a Nordic hotel operator founded in 1963 and headquartered in Stockholm. The company has 224 hotels. In addition to its Nordic presence, Scandic also has locations in Germany, Poland and Belgium.

The business had revenues of SEK 12.2bn in the 12 months to 30 September and employs a workforce of around 8,900.

People
Frank Fiskers is the CEO of Scandic.