Nordic property company SBB has revealed plans to list its residential subsidiary, Sveafastigheter, on the Nasdaq First North Premier Growth Market.
The IPO involves offering up to 49% of Sveafastigheter's shares to the public and qualified investors. Existing SBB shareholders will have priority to purchase shares.
The listing is expected to occur in the fourth quarter of 2024, subject to market conditions.
As of 30 June, Sveafastigheter's rental apartment portfolio was valued at approximately SEK 27.5 bn (€2.4 bn). Upon listing, it is poised to become Sweden's largest publicly traded residential real estate company, managing a portfolio of 14,500 apartments with another 7,900 in development.
The listing marks a significant step in SBB's strategy to split the company into three separate divisions. SBB has been working on the spin-off for over a year and has sold stakes in its education and community units to raise cash and reduce debt. The IPO of Sveafastigheter is expected to strengthen SBB's financial position further.
SBB’s strategy involves long-term ownership and management of social infrastructure properties in the Nordic region, as well as rent-regulated residential properties in Sweden. SBB also actively engages in property development.
DNB Bank ASA, Skandinaviska Enskilda Banken, Danske Bank, Nordea Bank, and Swedbank are acting as joint global coordinators and bookrunners. Advokatfirman Vinge and Milbank are providing legal advice, while Avanza Bank and Nordnet Bank are acting as retail distributors.
The listing of Sveafastigheter comes as the Swedish real estate market begins to recover from a funding crunch triggered by rising interest rates.