* IPO priced at 160 DKK
* Rise reflects discount in offer price - analyst
* IPO price gives market cap of almost 30 bln DKK
(Adds opening share price, analyst quotes)
By Teis Jensen
COPENHAGEN, March 13 Shares in Danish
outsourcing company ISS jumped by more than 15 percent
from the offer price after they returned to the Copenhagen stock
market on Thursday.
The cleaning and catering group, one of the world's biggest
private employers with more than 530,000 employees around the
world, is the largest company to launch an initial public
offering (IPO) in Denmark since telecoms operator TDC
listed in 1994.
The offering was priced at 160 Danish crowns ($29.81) per
share, just above the middle of the given range of 140-175
crowns, but the shares jumped to 179 crowns just after the
market opened. By 0956 GMT they had climbed to 184.50 crowns, up
"The rise reflects that ISS has given a discount in the
offer price to give investors a good experience, and that is
exactly what they got this morning," Sydbank analyst Soren
Lontoft Hansen told Reuters.
ISS, which competes with the likes of France's Sodexo
and Britain's Compass Group, has large
international contracts with companies including Barclays
, Hewlett-Packard, Citigroup and Novartis
More than 50 million new shares were issued on Thursday,
with an additional 1 million existing shares placed by Goldman
Sachs and Swedish private equity firm EQT.
The offering amounted to 8,196 million crowns, potentially
rising to 9,425 million crowns if an overallotment option is
exercised in full. ISS has said it will use the proceeds to
The offer price, representing a market capitalisation of
29.6 billion crowns, had been welcomed by analysts.
"I had expected a market capitalisation between 29 billion
and 37 billion crowns after the IPO, so it is pretty much in
line," Sydbank's Hansen said.
Alm Brand Bank analyst Michael Friis Jorgensen described the
offer price as "attractive".
Funds managed by EQT and Goldman Sachs delisted ISS
after they bought the business for 22.1 billion crowns in 2005.
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
A previous plan to list ISS in 2011 was dropped because of
shaky stock markets and an agreed 5.2 billion pound ($8.69
billion) bid by security services group G4S was
abandoned in November 2011 after resistance from the British
Nordea, Goldman Sachs and UBS were global
coordinators for the ISS offering and joint bookrunners
alongside Barclays and Morgan Stanley. Carnegie,
Danske Bank and SEB were co-lead managers.
($1 = 5.3672 Danish Crowns)
(Additional reporting by Shida Chayesteh; Editing by David