* Price range set at 140 to 175 Danish crowns per share
* Analysts see 5-15 pct discount for investors
* Private equity owners to sell part of their stake
(Adds detail, analysts)
By Ole Mikkelsen
COPENHAGEN, March 3 Danish business services
firm ISS A/S said its planned initial public
offering would take place on March 17 and it expected to raise
around 7.69 billion Danish crowns ($1.42 billion).
The company set a price range of 140 to 175 crowns for the
stock, valuing ISS at up to 31.7 billion crowns. It aims to use
some of the proceeds to bring down its debt. Its private equity
owners will sell only a small part of their holding to cover
their costs, an ISS spokesman said.
Jyske Bank analyst Janne Vincent Kjaer said the IPO price
represented a discount of 5-15 percent compared to her estimated
The final offer price and final number of offered shares
will be determined via the book building process.
"When you look at comparable companies' prices, it indicates
that investors will gain a favorable discount in this IPO, as a
reward for helping ISS to reduce their debt," said analyst Soren
Lontoft from Sydbank.
Funds managed by Swedish private equity firm EQT and by
Goldman Sachs bought ISS for 22.1 billion crowns and
delisted it from the Copenhagen bourse in 2005.
EQT and Goldman today hold 73 percent of ISS, after the
Ontario Teachers' Pension Plan (OTTP) and KIRKBI, which invests
funds from the family behind Lego toys, injected 500 million
euros ($685 million) for a combined 26 percent stake in 2012.
At the indicative price range, the free float will be
approximately 50-54 percent, assuming full exercise of the
overallotment option. The free float will include the shares
held by KIRKBI and OTPP.
Previous plans to list ISS, in 2007 and 2011, were dropped
because of shaky stock markets. The company does not expect
another delay this time, despite political tension in Ukraine.
"I'm not worried about what happens in Ukraine," Chief
Executive Jeff Gravenhorst told reporters on Monday, adding that
ISS had no business in that region.
The shares will be listed on the Nasdaq OMX Copenhagen
($1 = 5.4031 Danish crowns)
(Additional reporting by Annabella Pultz Nielsen and Teis Hald
Jensen; editing by David Holmes and Tom Pfeiffer)