IK's Attendo soars following SEK 8bn IPO in Stockholm

Attendo's stock was priced at SEK 50 per share, and hit a high of SEK 73 in the first hour of trading. The stock's performance my come as a surprise for some observers, given the ongoing media scrutiny and criticism levelled at for-profit providers of welfare services in Sweden.

In addition to care homes for the elderly and disabled, Attendo operates accommodation for refugees subsidised by the government, and has been accused of profiteering (source in Swedish) during the current European refugee crisis. The company denies the claims, while the debate in Sweden about potentially curbing profits in the welfare sector continues undeterred.

The flotation will bring in SEK 1.2bn in gross proceeds for the company. If the greenshoe option is fully subscribed, the value of Attendo's IPO will be around SEK 4.8bn, with around 60% of its shares in free float.

IK partially exited its investment held in the IK 2004 Fund, alongside the vehicle's co-investing LPs and other co-investors ICG and Varma Mutual Pension Insurance Company.

Following the share sale and assuming the full over-allotment option is exercised, IK's holding vehicle Augustus International will remain the largest shareholder with an 18.3% stake, while Attendo executive Pertti Karjalainen holds 11.2%, investment group Nordstjernan 10%, Swedbank Robur 9% and Didner & Gerge Funds 7.5%.

Nordstjernan has an option to purchase an additional 3% of Attendo's share capital from IK within six months of the IPO. Nordstjernan, Swedbank Robur and Didner & Gerge Funds had all committed to being cornerstone investors in Attendo ahead of the listing.

Carnegie and SEB were joint global coordinators and joint bookrunners on the IPO. Nordea was also a joint bookrunner and Danske Bank was co-lead manager. Sundling Wärn Partners was the financial adviser to Attendo.

The IPO is the second private equity-backed listing on Nasdaq OMX Stockholm of three that will have taken place in the space of a week, when EQT and Accent Equity Partners' Scandic Hotels lists on 2 December. On Friday, EQT listed leisure appliances maker Dometic in a SEK 14.2bn listing - making it the largest Nordic PE-backed IPO of 2015.

The exit of Attendo leaves only rail buffer manufacturer Axtone in IK's Industri Kapital 2004 portfolio. Attendo is the GP's sixth exit this year; combined with the fact that the GP last launched a fund in 2011, further strength is added to rumours of IK fundraising for an eighth fund to be announced in early 2016.

Later this week, unquote" will be speaking to bookrunner Carnegie for an in-depth look at the Attendo IPO.

Previous funding
The listing marks the first exit step for IK's nine-year ownership of Attendo, which it acquired in an SBO from Bridgepoint, Mexab and Säki in November 2006 through its Industri Kapital 2004 fund.

Company
Founded in 1985, Attendo is a provider of care services. The company is headquartered in Sweden and operates across the Nordic region, providing private as well as publicly outsourced care services to the elderly, disabled, families and individuals, including refugees.

Attendo employs a staff of 18,000 and had revenues of SEK 7.3bn from January to September, with EBITA of SEK 718m. As of September 30, the company's net debt was SEK 4.1bn.

People
Henrik Borelius is the CEO of Attendo.

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• Topics
• Exits
• Nordics
• Healthcare
• Sweden
• IPO
• Partial sale
• IK Investment Partners
• Carnegie
• SEB
• EQT
• Accent Equity Partners