Norwegian company Adevinta has completed its initial public offering on April 16 which has valued the business at US$6.20 billion or 53 billion Norwegian crowns. The company works in online classified ads.
The Adevinta IPO is largest IPO in the Nordic nation since 2006 and the fourth biggest in history exceeded only by past IPOs of REC Silicon, Telenor and Equinor. Adevinta is a spin-off company from the media group Schibsted. The chief executive of Adevinta had said last year they are planning for more mergers and acquisitions in North Africa, South America and Europe.
The break-up from Schibsted made it easier for investors to know the value of Adevinta’s assets by comparing other peers such as New Zealand’s TradeMe, Australia’s REA Group and Britain’s Rightmove and Autotrader.
The company said in the statement that its B shares were valued at 78 Norwegian crowns during bookbuilding which is in the upper half of the 70-82 crown range set on initially on April 1. The company has not sold vote-heavy A shares in the IPO but the share class A typically gets a better premium to B shares potentially valuing Adevinta at 55 billion crowns.
Adevinta plans to eventually merge the both the share classes. Even after the listing, Schibsted and its owner Blommenholm Industrier will continue as the majority shareholder in the newly formed company.
The company began with a modest newspaper publishing business and now has fast-growing boot-sale apps and websites in 22 countries enabling professional and private users to advertise anything on its classifieds website form secondhand items to jobs, cars or homes.
Adevinta-owned brands include Britain’s Shpock, Brazil’s OLX and France’s Leboncoin among others. Schibsted will continue to keep the classified ads and newspaper units in the Nordic region.
The Facebook Marketplace launch in 2016 weakened the share price of Schibsted but there were signs of rebound after it was seen that Google, Amazon and Facebook had very little impact on the company’s online classifieds business.