Instalco was listed on May 11th, 2017, on Nasdaq Stockholm. The Initial Public Offering (the “IPO”) attracted very strong interest both from Swedish and international institutional investors, as well as from the general public in Sweden. The offering was substantially over-subscribed and the share price increased by 18.2% during the first day of trading.
The listing price was set at SEK 55 per share, which was in the top of the communicated IPO range of SEK 50 - 55. Given full exercise of the over-allotment option, the IPO will comprise 20,238,172 shares, corresponding to a total value of the IPO of approximately SEK 1.1 billion and 43.7 percent of the total number of shares outstanding. FSN IV will hold approximately 19.6 percent of the shares after the IPO, assuming the over-allotment option is exercised in full. The IPO valued Instalco at a market capitalization of SEK 2.5 billion.
Swedbank Robur Fonder, Handelsbanken Fonder, RAM ONE, Carnegie Fonder, Pareto Asset Management and Färna Invest acted as cornerstone investors in the IPO and subscribed for shares corresponding in total to 49.4 per cent of the Instalco shares in the offering including full exercise of the over-allotment option.
Peter Möller, Partner at FSN Capital says:
“FSN is very pleased with the successful partnership with CEO Per Sjöstrand and his team at Instalco. During the last three years, we have together built Instalco from a regional player in Sweden with revenues of SEK 557 m to pan Nordic, multidisciplinary company with 2016 proforma revenues of SEK 2,852 m. The successful listing of Instalco represents FSN’s second IPO on the Swedish market and we are very satisfied with the impressive list of investors that now have become owners of Instalco”.
Over 2,000 investors were allotted shares in Instalco in the IPO.
The Group was formed on the initiative of its CEO, Per Sjöstrand, in February 2014 by a consolidation of five installation companies, each with long and successful history. Instalco’s business concept is to be able, through cooperation between locally leading and highly specialised units, to offer competitive multidisciplinary solutions, while at the same time achieving coordination benefits. Since its formation the Company has demonstrated strong growth (Instalco has increased its revenue by more than four times between 2014 and 2016), driven primarily by acquisitions but also through organic growth. The positive effects of coordination have become visible through, for example, collaboration within multi-disciplinary projects and purchasing cooperation. Instalco’s ability to offer multidisciplinary installation and service solutions provides both safer and better coordinated complete offerings to the customers. The Company has a decentralised structure aimed at encouraging a strong entrepreneurial spirit and although the Company itself is relatively young, its units possess long experience of complex installations in various environments and within several disciplines. Pro forma for the 2016 financial year, Instalco had net sales of SEK 2,852 million and an adjusted EBITA of SEK 219 million, corresponding to an adjusted EBITA margin of 7.7 percent.