Swedish hotel property company Pandox has raised SEK 2 bn (€176.8) through a share issuance.
The company issued 10.75 million new class B shares at a subscription price of SEK 186 (€16) per share.
The subscription price represents a discount of approximately 4.9% compared to the closing price on 17 September. The placement was facilitated by ABG Sundal Collier, DNB Markets, Handelsbanken, and Skandinaviska Enskilda Banken.
A significant number of Swedish and international institutional investors participated in the Directed Share Issue, including AMF Pension & Fonder, Eiendomsspar AS, and Carnegie Fonder.
Pandox plans to utilize the proceeds from this share issuance to maintain its strong financial position following recent acquisitions of four hotels in London and Edinburgh for £279 mln (€330 mln). Additionally, the share issue will allow for greater financial flexibility, enabling the company to pursue future property investments that are expected to enhance cash earnings per share.
Liia Nõu, CEO of Pandox said: ‘Pandox has long experience of successfully creating value by acquiring, developing and enhancing underperforming hotel properties in an international environment. Underlying demand in the hotel market is positive and we see good opportunities to make more attractive acquisitions and profitable investments in the existing portfolio. The new share issue increases our financial flexibility and strengthens our ability to continue to create an attractive return for our shareholders.’
Following the issue, the total number of shares in the company increased to 194.6 million, consisting of 75.0 million class A shares and 119.6 million class B shares. The share capital increased from SEK 459.6 mln (€40.6 mln) to SEK 486.5 mln (€43.0 mln).
