3 Min Read
* Shares rise as much as 6 pct in early trading
* IPO priced at 61 crowns, valuing firm at 6.1 bln SEK
* Biggest Swedish listing since 2006 (Adds valuation, background)
By Sven Nordenstam and Niklas Pollard
STOCKHOLM, Dec 10 (Reuters) - Shares in bath and toilet maker Sanitec jumped on their first day of trading after Sweden's biggest listing in seven years met with strong demand from investors betting on a pick up in Europe's long-suffering construction industry.
The stock rose as much as 6 percent in early Tuesday trading to hit 64.75 Swedish crowns. That compared with the offering price of 61 crowns per share and valued the group at around 6.5 billion Swedish crowns ($994 million).
The listing of Sanitec by private equity firm EQT comes amid signs of a pick up in the euro zone economy after a protracted period of weakness, and follows a slew of largely successful European initial public offerings (IPOs).
So far this year, European IPOs have raised a total of $32.9 billion, up 137 percent from the same period last year, according to Thomson Reuters data.
"The offering attracted strong interest among Swedish and international institutional investors as well as Swedish retail investors. The offering was over-subscribed several times," Sanitec said in a statement.
The company made earnings before interest, tax, depreciation and amortisation (EBITDA) of 102 million euros ($140 million) in the twelve months through September, and had net debt of 180 million euros at the end of the third quarter.
The offering price valued Sanitec at around 8.5 times EBITDA, including debt.
That is slightly below the valuation of building components firm Lindab and kitchen firm Nobia, which are also listed in Stockholm and dependent on the fortunes of the European construction market.
They are valued at about 10 times forecast 2013 earnings, according to Thomson Reuters Starmine.
Sources told Reuters last week that Sanitec shares would be priced between 60 and 63 crowns, toward the top end of an initial range of 54-66 crowns.
Sanitec said the offering had been increased by 12.2 million shares, meaning in all 52.2 percent of a total of 100 million shares in the company had been sold. Another 7.8 million could be sold under an over-allotment option, it added.
Nordea and UBS Investment Bank acted as joint global coordinators and bookrunners for the offering. Carnegie Investment Bank also acted as joint bookrunner, while Handelsbanken Capital Markets was co-lead manager, Sanitec said.
($1 = 6.5407 Swedish crowns)
$1 = 0.7289 euros Editing by Mark Potter