Netcompany Group A/S (“Netcompany” or the “Company”) has on June 7, 2018, been admitted to trading and official listing on Nasdaq Copenhagen. The Initial Public Offering (the “IPO”) attracted very strong interest from both Danish and international institutional investors as well as the general public in Denmark.
The offer price for Netcompany’s IPO was set at DKK 155 per share, which was in the upper end of the communicated IPO price range of DKK 135 – 165 per share. At the offer price, the total market value of the Company’s shares is DKK 7,750 million. Assuming full exercise of the over-allotment option, a total of 23 million shares will be sold in the offering, corresponding to approximately 46% of the total number of shares in the Company.
Assuming full exercise of the over-allotment option, FSN Capital IV and its co-investors will have sold 11,842,243 shares in the offering. Following the IPO (and assuming full exercise of the over-allotment option), FSN Capital IV and its co-investors will hold 10,263,381 shares in the Company, equivalent to approximately 20.53% of the total number of shares in the Company.
André Rogaczewski, CEO and Co-founder of Netcompany:
“During the last two remarkable weeks, we have met with investors in Europe and the U.S., many of whom will be shareholders in Netcompany. The interest has been overwhelming and confirms to us that delivering on time, on budget and within scope is a simple but strong foundation for building a value-creating business with sustainable growth and profitability. Our listing on Nasdaq Copenhagen will strengthen our public and commercial profile, thus creating an even stronger backbone for continued growth and international expansion. Personally, I look forward to continuing the journey together with all of our new shareholders. Thank you for your support.”
Pekka Ala-Pietilä, Chairman of the Board of Directors:of Netcompany
“Our societies are currently undergoing a massive digital transformation and as a provider of next generation IT services that create strategic advantages for customers, Netcompany is at the epicenter of that digitalization. The IPO of Netcompany will support the ambition to become a Northern European market leader by advancing the company’s public and commercial profile and thus strengthen customer relations, the ability to gain market share, and not least continue to attract the best candidates from top universities.”
Thomas Broe-Andersen, FSN Capital Partners (investment advisor to the FSN Capital Funds):
“The two and a half years since FSN Capital joined Netcompany as shareholders have been truly remarkable. By building on its long track record of industry-leading growth and sustainable profitability, the company has moved from being a Danish IT service provider to a truly international company with a diversified public and private customer base. Netcompany has multiple growth levers and a unique business model, so FSN Capital look forward to also take part in the future development as investors together with new Danish and international shareholders.”
About Netcompany Group
Netcompany is a pure-play next-generation IT services company, focused on delivering business critical IT solutions to large Public and Private sector customers to lead and support them in their digital transformation journeys. These solutions are at the heart of an organisation’s core strategy or function and are thus highly significant for customers in conducting their core business.
The Company has developed and institutionalised a highly differentiated business model that, for over 18 years, has proven to be repeatable and scalable and enables the Company to deliver projects on time, on budget and within scope. The uniqueness of the Company’s business model is characterised by an integrated sales and delivery approach, IT people leading IT people, a very customer transparent and deliverable-driven methodology and a highly skilled team of IT professionals, with an average age in 2017 of approximately 33 years.
As at 31 March 2018, the Company had approximately 1,403 employees based in Denmark, Norway and the United Kingdom and an additional 315 employees based in Poland and Vietnam.
Over the past few years, Netcompany has shown strong financial performance with revenue increasing by 57.4% from 2016 to 2017. In 2017, organic revenue growth was 37.0% and adjusted EBITA margin was 28.4%. The strong performance has continued in Q1 2018 with revenue increasing by 55.3% when compared to Q1 2017. In Q1 2018, organic revenue growth was 33.1% and adjusted EBITA margin was 24.7%.
Danske Bank A/S, Deutsche Bank AG, London Branch, and Morgan Stanley & Co. International plc acted as Joint Global Coordinators and Joint Bookrunners and Skandinaviska Enskilda Banken, Danmark, Filial af Skandinaviska Enskilda Banken AB (publ.), Sverige acted as Joint Bookrunner in the IPO.