Com Hem IPO could be worth $935m

Swedish cable operator Com Hem has said that it will raise gross proceeds of up to SEK6.237 billion (US$935.7 million) through its IPO, with the offering valuing the equity of the firm at SEK10.637 billion to SEK12.437 billion.

Com Hem said that after years of private ownership the IPO will help support the firm’s “future growth and operational strategy” and provide financial flexibility and improved access to public capital markets.

In the prospectus for its stock market floatation, Com Hem said that it expects to set the price for the offering at between SEK44 andSEK62 per share and sell between 91.4 and 128.9 million newly issued shares.

The application period for the offer to the Swedish public is expected to start on June 4, 2014 and close on June 13, 2014. Private placements to institutional investors, including a private placement in the US to qualified institutional buyers will start on June 4 and end June 16.

Com Hem is expected to begin trading on the NASDAQ OMXStockholm on June 17, 2014 under the trading ‘COMH’.

“Significant investments have been made in order to strengthen our business and I am convinced we have a compelling value proposition to customers,” said Com Hem CEO, Anders Nilsson.

“Together with the management team and all our employees we are ready to embark on this exciting journey. We have created a solid platform, now it’s about execution. We welcome new shareholders to take part in Com Hem’s future as a listed company.”

Com Hem is offering shares that will raise gross proceeds of SEK5.67 million. However, it has also granted its joint global coordinators an ‘over-allotment option’ to purchase an additional 10% worth of new shares. Assuming that this option is exercised in full, the offering will amount to SEK6.237 billion.

Com Hem first announced its intention to launch an IPO on May 23.

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