E-commerce group Ellos Group, with the brands Ellos, Jotex and Homeroom, today makes its official debut on the Stockholm Stock Exchange under the short name "ELLOS". In a press release on Wednesday morning, the company confirms the outcome of the offer directed to the public in Sweden and Norway, as well as to institutional investors.
Valuation and Capital Injection
The price per share was set, as previously communicated, at SEK 60. This gives the company a market value of approximately SEK 1.485 billion for outstanding shares after the offer, assuming the over-allotment option is not exercised. This is in line with the indicative takeover bid of SEK 1.5 billion that the owners recently declined in favor of a listing.
The offer comprises 5 million newly issued shares, which will add SEK 300 million to the company before emission costs. To manage potential over-allotment, there is also an option for an additional 750,000 shares. If this is fully utilized, the offer will be extended to a total of SEK 345 million.
In advance, a group of so-called cornerstone investors have acquired shares for approximately SEK 203 million. This group consists of Martin Bjäringer, Carl Rosvall, Heimdal Førvaltning, Sissener, Storm Bond Fund and Tinden Holding. Together, they will hold 13.3 percent of the capital and votes if the over-allotment option is fully exercised.
Management Comments
Both management and the board express positive views on the completed offer and the upcoming trading.
Today marks the start of a new chapter for Ellos Group. Over the past few years, we have carried out a comprehensive transformation with improved profitability, stronger cash flow and a more robust capital structure and today have a leading position in fashion and home decor in the Nordics. The listing on Nasdaq Stockholm gives us a strong platform to continue developing our brands, growing the business and creating long-term value for shareholders, customers and partners, comments CEO Hans Ohlsson.
Chairman of the Board Morten Eivindssøn Astrup also highlights the choice to go public instead of a direct sale:
As the company is now listed with a market value of approximately SEK 1.5 billion, it is a robust company with nearly 3 million customers and a strong balance sheet that provides flexibility to create shareholder value.
We are going public with shareholders who chose to waive an indicative bid for the company at a valuation that was close to 30 percent above the listing price. Our task now is to prove that it was a well-founded decision.
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