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Pandora IPO covered after one day: sources

today Sep 24, 2010
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(Reuters) - Danish jewelry maker Pandora's initial public offer (IPO) was covered at the end of the first day of bookbuilding, two banking sources close to the deal said.


One source said the sale of up to $2.16 billion of stock had a "very good start" after books opened on Thursday, quickly attracting enough orders to cover the base deal, excluding overallotment -- or greenshoe -- shares.

The second source said the sale had seen interest throughout the 175 to 225 crowns per share price range.

The company and bankers have so far visited Denmark and Britain on a roadshow, so the bulk of the early interest has come from investors in these countries, the source added.

The roadshow heads to the U.S. next week and is also scheduled to visit Scandinavia and other European countries.

The price range represents a valuation of 10.6 to 13.5 times expected earnings, regarded by bankers on the deal as competitive compared with peers.

Order books close on October 4 and the shares are due to start trading on the Copenhagen bourse the next day.

The deal mostly comprises a partial exit by its owners, private equity firm Axcel which currently holds 59.3 percent of the company, and the founding family.

The owners are offering 44.5 million shares in the sale while the company will issue 2.7 to 3.4 million new shares.

The company has previously said that the free float will comprise 35.7 percent, excluding any overallotment..

The greenshoe comprises 6.7 million existing shares.

Denmark is emerging as a listing hotspot in Europe, with Pandora following on the heels of a deal from food ingredients maker Chr. Hansen in June, Copenhagen's first major listing in years.

Other Danish firms tipped to list include cleaning services firm ISS.

Goldman Sachs, JP Morgan, Morgan Stanley and Nordea are joint global coordinators and bookrunners for the IPO, while Carnegie and SEB are co-lead managers.

(Additional reporting by Anna Ringstrom in Copenhagen; Editing by Mike Nesbit)

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