Nordnet, the leading pan-Nordic digital savings and investments platform, completed its successful c. SEK10.4bn (US$1.22bn) IPO on Nasdaq Stockholm on 25th November 2020.
STJ Advisors advised the Company and the Selling Shareholders - Nordic Capital, the Öhman Group and Dinkelspiel Family.
Nordnet de-listed in 2016 when Nordic Capital acquired a c. 41% stake in the Company. Nordnet’s successful return to listing followed a significant investment in the technology, capacity and product reach of the Nordnet platform that re-inforced Nordnet’s superior growth profile across Sweden, Denmark, Finland and Norway.
The IPO was marketed to institutions in Sweden and internationally and to retail investors via a public offer in Sweden, Denmark, Finland and Norway, and created more than 32,000 new shareholders (many of whom are the Company’s existing savings and investment clients) demonstrating the power of Nordnet’s capacity to “democratise savings and investments” in the Nordic region.
The Company’s market capitalisation at the IPO price is SEK24bn (US$2.8bn) and the c. 43% free float offering consisted only of secondary shares. Following the IPO, Nordic Capital retains a shareholding of c.9%, with the Öhman Group, Dinkelspiel Family and related parties holding c. 45%, and management owning the remainder.
The IPO took just over 3 months to complete from STJ Advisors’ appointment, an extraordinarily short execution period, before even acknowledging the disruption caused by the Covid-19 global pandemic.
Most aspects of the process were completed virtually including bank pitches and selection, process execution and all investor marketing (except for certain Swedish investors).
An extensive investor marketing process involving early look meetings, deep dive events, and pilot fishing provided more than 60 investors with significant education and management interaction prior to the IPO launch. Of this investor group, over 20 investors were taken through an NDA process culminating in a strong anchor commitment prior to launch of bookbuilding - thus de-risking the outcome and providing significant positive momentum to subsequent bookbuilding and order generation from the more than 500 investors met in pre-deal investor education.
A very strong message of “books covered throughout the range on the maximum deal size” was issued within 24 hours from launch of bookbuilding.
The offering priced at SEK96, in the middle of the price range with multiple times oversubscription. The Selling Shareholders’ pricing decisions reflected a desire to promote a strong aftermarket and returns for all shareholders including for the new employee and customer shareholders. They were rewarded with the stock trading up to close day-1 trading at SEK105 – a “model” c.9% above the IPO price on modest volumes (15% of the full offer size).
STJ Advisors advised on all aspects of the IPO process including construction of Nordnet’s investment case “reason-to-buy”, the appointment and management of the bank syndicate and wider advisors, the investor marketing process and the key decisions on timing, sizing, pricing and allocation of the IPO.
The strength and energy of the Nordnet Management team and all Shareholder decision-making throughout the IPO, was supported by direct “home-team” advice from the STJ Advisors team ensuring transparency, control and the ultimate success of the IPO.