* Com Hem narrows IPO range to SEK 55-60 from SEK 44-62
* Means market capitalisation of 11.2 to 11.7 bln SEK
* Implies EV of 8.8-9.0 times 2015 EBITDA
STOCKHOLM, June 13 Swedish cable operator Com
Hem has narrowed the price range for its initial public offering
(IPO) towards the higher end of its initial guidance, in a sign
of strong interest from investors, two people familiar with the
matter said on Friday.
The people said Com Hem shares would be priced between 55
and 60 Swedish crowns apiece ahead of its market debut in
Stockholm next week, compared with an initial guidance range of
44 to 62 crowns. Com Hem declined to comment.
Com Hem said last week it planned to raise 5.67 billion
crowns ($852 million) by selling new shares, the second largest
amount raised in an IPO by a Nordic firm this year and Sweden's
biggest offering since the debut of then state-owned telecom
operator Telia in 2000.
The new range means Com Hem will have to issue between 94.5
million and 103.1 million new shares to raise the 5.67 billion
crowns. It will give Sweden's biggest cable operator a market
capitalisation of between 11.2 and 11.7 billion crowns.
There is also an over-allotment option that may increase the
number of shares issued by ten percent.
The firm has said it will have net debt of around 9.5
billion crowns after the offering. This means the new price
range implies an enterprise value (equity plus debt) of 8.8 to
9.0 times 2015 earnings before interest, tax, depreciation and
amortisation (EBITDA) as forecast by Nordea analysts in a
research note on Com Hem aimed at investors.
That is higher than the 8.3 multiple for U.S. cable group
Liberty Global, but slightly lower than Belgium's
Telenet, which trades at 9.3 times 2015 forecast
EBITDA, according to Thomson Reuters data.
France's Numericable, whose shares are up almost
80 percent this year, trades at 12.5 times expected 2015
earnings whereas Dutch cable firm Ziggo, which
Liberty Global is buying, trades at 10.5.
JP Morgan, Morgan Stanley and Nordea are joint global
coordinators in the IPO. Rothschild is financial adviser to the
company and its owners.
Com Hem had sales of 4.4 billion crowns in 2013 and EBITDA
of 2.2 billion.
Shares in Com Hem, owned by private equity firm BC Partners
, will start trading in Stockholm on June 17.
($1 = 6.6532 Swedish Kronas)
(Reporting by Sven Nordenstam; Editing by Mark Potter)