STJ advises Readly International AB on its SEK760m IPO on Nasdaq Stockholm

18 September 2020

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Readly is the European category leader for digital magazines. Readly offers a subscription service, online or via apps and has subscribers in more than 50 countries with core markets in Germany, the UK and Sweden.

The offering, which employed a number of recent innovations in IPO marketing, raised SEK760m with a fixed offering price of SEK59 per share, corresponding to a market capitalisation of c. SEK2,168m (€208m).

Eight high quality Swedish cornerstone investors committed to c. 48% of the IPO prior to the IPO ITF announcement, significantly de-risking the offering against an exceptionally volatile market backdrop as a result of the COVID-19 virus and a wider tech-sector sell-off, with the VIX volatility index in the range of 24 to 38.

The IPO, which attracted demand from over 150 institutions, was more than 10x oversubscribed excluding the cornerstone investors and Readly now has approximately 25,000 new retail investors.

Shares closed up 10.2% on the first day at SEK65 per share, against a declining market backdrop and risk-off investor mood with significant pressure on the technology sector.

STJ recommended a broad international early look process especially in Readly’s core markets, which resulted in high conversion levels of high quality blue-chip institutional demand over and above strong local support.

STJ also recommended a 2-and-a-half-week timetable from IPO announcement to start of trading (vs. the standard 4 weeks), capitalising on the new norm of virtual marketing and a very extensive early-look investor education process, reducing exposure to overall market volatility.

Virtual meetings allowed a very efficient international schedule of analyst investor education and management roadshows (161 Investors from 16 countries met by analysts and 101 investors from 16 countries met during the management roadshow despite a very compressed 3-day only roadshow).

STJ advised the Company and its Board of Directors on the key aspects of the transaction including timetable, bank selection and terms of engagement, co-ordination of early investor education and the cornerstone process and negotiation tactics, management of research production, detailed review and analysis of the syndicate’s pre-deal investor education activities, offer structure, pricing and sizing parameters and final allocations.

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