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UPDATE 1-Sweden's Com Hem prices IPO at 44-62 SEK per share
June 3, 2014 / 5:08 PM / 4 years ago

UPDATE 1-Sweden's Com Hem prices IPO at 44-62 SEK per share

* Sees gross proceeds of $848 mln

* Largest listing in Sweden since Telia in 2000

* Proceeds to be used to reduce debt (Adds background)

STOCKHOLM, June 3 (Reuters) - Shares in Swedish cable operator Com Hem are expected to be priced between 44 and 62 crowns per share in its Stockholm listing this month, the company said on Tuesday.

Com Hem, owned by private equity firm BC Partners , said that gross proceeds from the initial public offering (IPO) are seen at 5.67 billion Swedish crowns ($848 million), with the sale of between 91.4 million and 128.9 million new shares.

That would make it the largest listing in Sweden since telecoms operator Telia in 2000. Com Hem said it expects the shares to start trading on June 17.

The company said in a statement that it had granted the joint global coordinators an over-allotment option to buy additional new shares amounting to 10 percent of the initial offering.

Assuming the option is exercised in full, the offering would amount to 6.237 billion crowns, valuing the equity of Com Hem at between 10.6 billion and 12.4 billion crowns.

Com Hem said in May that it planned to raise about 5.5 billion crowns in an IPO in Stockholm, adding to a string of Nordic listings this year.

The listing comes amid a flurry of deal activity in the European cable sector. Vodafone this year agreed to buy Spain’s largest cable firm, Ono, in a $10 billion deal and U.S. cable group Liberty Global is buying Dutch peer Ziggo

Com Hem said in May that the IPO proceeds would be used to reduce debt.

The expected value would be the second-largest sum raised by a Nordic firm in an IPO this year, behind the 8 billion Danish crowns ($1.46 billion) raised by outsourcing firm ISS in March.

JP Morgan, Morgan Stanley and Nordea are acting as joint global coordinators and joint bookrunners. Carnegie is joint bookrunner and Rothschild is acting as financial adviser to the company and its owners.

BC Partners bought Com Hem in 2011 for about $2.6 billion.

Com Hem had sales of 4.4 billion crowns in 2013 and earnings before interest, tax, depreciation and amortisation of 2.2 billion crowns. ($1 = 6.6858 Swedish Kronas) ($1 = 5.4798 Danish Krones)

Reporting by Stockholm newsroom; Editing by David Goodman

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