Sweden's EQT Partners could launch 1 billion euro IPO next week: sources

LONDON/FRANKFURT (Reuters) - Sweden’s EQT Partners is planning to launch an initial public offering (IPO) in the coming days in a deal that is likely to value the buyout firm at around 4 billion euros ($4.5 billion), according to three sources familiar with the matter.

FILE PHOTO: Swedish private equity group EQT CEO Christian Sinding poses for a picture at the companyÕs headquarters in Stockholm, Sweden June 24, 2019. REUTERS/Esha Vaish/File Photo

The private equity firm has appointed JPMorgan and SEB as global coordinators for the Stockholm listing and Goldman Sachs, Morgan Stanley, UBS and Nordea as joint bookrunners, the sources said.

They said the plan is to price the deal by the end of September, before the deadline for Britain’s exit from the European Union, which market participants fear could cause severe stock market volatility.

The banks either declined to comment or were not immediately available for comment when contacted by Reuters. EQT declined to comment.

Despite a deteriorating outlook for Europe’s economy, bankers are expecting a few European firms to go ahead with IPO plans in September. German tech firm TeamViewer started the post-summer proceedings earlier on Wednesday, announcing its intention to float on the Frankfurt stock exchange.

“I don’t expect it to be the busiest IPO window ever, but I do think you could see some announcements in the next 10 days with a view to completing the deals in September,” said one banker involved in some of the upcoming transactions.

“There is no unifying sectoral theme in Europe. For the first wave of IPOs, the focus will be on size and quality,” he said.

TeamViewer’s IPO is expected to be raise around 1.3-1.4 billion euros and the targeted deal size on EQT is likely to be around 1 billion euros, a second source said.

With 40 billion euros ($45 billion) under management, EQT has transformed itself since its 1994 launch from an investment arm for Sweden’s influential Wallenberg family into Europe’s second-largest private equity fund behind Britain’s CVC.

“In order to future-proof EQT and continue our growth, we are considering taking this a step further by building EQT’s own balance sheet,” Chief Executive Christian Sinding told Reuters in July.

Successful transactions for EQT and TeamViewer would be a fillip for the IPO market in Europe, which is enduring its worst year since 2012 as worries simmer that a potential recession and fractious global trade relations could hurt stock markets later this year.

Reporting by Abhinav Ramnarayan and Arno Schuetze, Editing by Sinead Cruise and David Evans