* Munters pegs valuation at SEK 10.1 bln
* Nordic Capital to sell less than half its stake
* Cornerstone investors include Wallenberg-controlled FAM (Adds Nordic Capital comment, background, detail)
By Niklas Pollard
STOCKHOLM, April 27 (Reuters) - Swedish air treatment group Munters, owned by private equity firm Nordic Capital, will return to the Stockholm stock market through an initial public offering (IPO) almost seven years after being taken private, it said on Thursday.
Munters said the IPO is expected to value the company's total equity at 10.1 billion Swedish crowns ($1.15 billion) and that five cornerstone investors had agreed to buy a stake totalling 26 percent of the company.
Among these investors, holding company Foundation Asset Management (FAM), controlled by Sweden's Wallenberg business family, will take a 10 percent stake.
Nordic Capital said its Fund VII would also retain significant ownership in Munters.
"We intend to sell less than half of our ownership stake and keep significant exposure -- really as much as possible -- but we need to create the opportunity for trade in the stock as well," Nordic Capital Partner Joakim Karlsson told Reuters.
Reuters reported in March that Munters was likely to publish its intention to float in late April or early May.
A successful IPO of Munters, one of the world's largest makers of climate-control systems, would mark the biggest listing on the Nasdaq Stockholm exchange this year and comes as amid a flurry of record highs in major equity markets.
"Conditions for listings are good. All the classic criteria, such as very low volatility, overall strong equity markets and a good macro conditions ... are there," Karlsson said.
Munters' IPO estimate pegs the company's valuation at 17.5 times 2016 operating earnings.
The company last week reported first-quarter adjusted earnings before interest, tax and amortisation of 147 million Swedish crowns, up from 119 million crowns a year earlier.
Nordic Capital took Munters private in 2010, paying 5.7 billion crowns for its shares after a bidding war with Swedish engineering group Alfa Laval.
Since then, Munters has sold a non-core asset to private equity firm Triton and bought several companies, including Rotem and Reventa, two manufacturers of control systems for farms.
Carnegie Investment Bank and Goldman Sachs International are joint global coordinators and joint bookrunners for the listing. ($1 = 8.7665 Swedish crowns) (Additional reporting by Johannes Hellstrom; Editing by David Goodman)