* 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 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)