Regional property owner begins trading on Stockholm stock exchange

NP3 Real Estate, the manager of SEK 3 bn (€320 mln) of commercial property in northern Sweden, has begun trading on Nasdaq Stockholm's main market.

The company said its offering of 6.6 million shares was 'several times' oversubscribed, with 50% allocated to institutional investors in Sweden.

Based on a subscription price of SEK 30 and the allotment option being fully exercised, the value of NP3's shares comes to almost SEK 1.5 bn.

Chairman Rickard Backlund - former head of Aberdeen Property Investors - said the proceeds raised would mainly be used for further acquisitions in the company's target area: from Borlänge to Kiruna in northern Sweden.

NP3 was founded in 2010 as a cash-flow oriented property company focused on high-yield commercial investment properties in northern Sweden. The CEO is Andreas Nelvig. By autumn 2014 the company owned and managed some 120 properties, totalling 458,000 m2, of office, retail, commercial, logistics and industrial space. The portfolio was valued at SEK 3 bn at the time and generated SEK 375 mln in annual rents from 600 tenants.

Catella Corporate Finance was the financial adviser for the listing, with legal advice provided by law firm Gernandt & Danielsson. Avanza Bank was the issuing agent and selling agent.

'Catella has acted as the financial adviser to NP3 during the process leading up to today's market listing. The project has covered everything from capital raising and acquisition advice to assistance with the listing process, demonstrating the breadth of our expertise,' said Johan Ericsson, head of Catella's Swedish corporate finance operations.