* 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 (Reuters) - 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