Serneke intends to list on Nasdaq Stockholm

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

Serneke Group AB (publ) (“Serneke” or the “Company”) today announces its intention to launch an initial public offering and list its shares on Nasdaq Stockholm (the “Listing” or the “Offering”).

  • Nasdaq Stockholm has approved Serneke’s application for listing subject to customary conditions
  • The Company’s CEO, founder and largest shareholder, Ola Serneke, as well as its second largest shareholder, Lommen Holding AB, have, subject to certain conditions, committed to acquire shares in the Offering corresponding to about SEK 50 million in total
  • The Offering will primarily comprise of new shares issued by Serneke to qualified institutional investors in Sweden and internationally as well as to the general public in Sweden
  • The Company intends to use the share issue proceeds to allow for continued growth primarily through organic growth complemented by selective acquisitions
  • Full details of the Offering will be included in the prospectus which is expected to be published on or about 14 November 2016
  • The first day of trading is expected on or about 24 November 2016

Ola Serneke, CEO, founder and board member of Serneke
“I founded Serneke with a vision to create a nationwide construction and project development company. We – all employees in Serneke - have since then worked dedicated with that vision in mind. With a clearly defined business plan we focused on winning larger projects, which has been essential for us in order to become the dynamic and fast growing company we are today. We offer the same knowledge and safety as the market leaders, but with more energy, greater commitment and a more modern point of view.

I would like to thank all employees, whereof many are already shareholders today, who have made this journey possible. We are soon to reach an important milestone in Serneke’s development when we are listed on Nasdaq Stockholm. Our experience in combination with exciting growth opportunities ahead makes us look brightly upon the future as a listed company.”

About Serneke and background to the Offering
Serneke is one of Sweden’s fastest growing construction and project development groups, with a comprehensive offering within construction, civil engineering, project development and property management. Since the start of operations in 2002, Serneke has developed from a local construction company to a dynamic and fast-growing construction group with a strong project development portfolio. Between 2002 and 2015, Serneke increased sales from SEK 14 million to SEK 3.1 billion, at an average annual growth rate of 51.5 percent. For the financial year 2015, Serneke reported an operating profit of SEK 128 million, corresponding to an operating margin of 4.1 percent. On 30 September 2016, the Company’s order book amounted to SEK 6,629 million.

The Company builds and develops housing, commercial buildings, industrial facilities, public buildings, roads and civil engineering projects, and other infrastructure. Serneke is also active within project development and property management. The Company’s customers mainly include the Government, municipalities, property companies, industrial and trading companies, as well companies owned by local and central governmental authorities. Operations are focused on the three greater areas of Gothenburg (Region West), Stockholm (Region East) and Malmö (Region South). The Company is headquartered in Gothenburg and has offices in Stockholm, Malmö, Helsingborg, Borås, Halmstad, Strömstad, Trollhättan, Varberg and Alingsås. On 30 September 2016 the Company had 838 employees.

Together with the Company’s employees, Serneke’s Board of Directors and Management have purposefully developed the operations, making the Company today one of Sweden’s ten largest construction companies. Serneke has also built up a responsible and well defined organization with a brand that represents commitment, innovation and knowledge. Motivated employees are crucial to the Company’s success and a number of employees are shareholders in the Company, which contributes to their commitment to the day-to-day operations.

The Company has built a platform with experience and structure that, combined with positive underlying market trends, provides favorable prospects for continued growth and increased earnings. Moving forward, the Company’s goal is to primarily grow organically. Acquisitions can be made when there is good potential for positive synergies. The Board of Directors and Management believe that a listing on the Nasdaq Stockholm exchange is a logical step in the Company’s continued development, since access to the Swedish and international capital markets can accelerate the Company’s growth, thereby generating value for new shareholders.

The Offering consists primarily of newly issued shares aimed at institutional investors in Sweden and internationally, as well as to the general public in Sweden. The company’s CEO, founder and principal owner, Ola Serneke, and the Company’s second largest shareholder, Lommen Holding AB, have, under certain conditions, agreed to acquire shares in the Offer for a total of approximately SEK 50 million. The proceeds that the Company receives in connection with the Offer will be used to (i) strengthen the Company’s position in Construction and Civil Engineering in its existing regions, (ii) enable continued focus on Project Development through acquisition of land and properties with attractive development potential, (iii) utilize the organizational platform for continued growth and (iv) make selective acquisitions of operating companies.

The Board of Directors and Management believe that the Listing of the Company’s shares is a logical and important step in the Company’s development. The Listing makes it possible to broaden the Company’s shareholder base to include investors beyond the existing approximately 130 shareholders. The Company also believes that a listing will increase awareness among existing and potential customers, employees, suppliers and partners regarding Serneke and its operations. For these reasons, the Board of Directors has applied for a listing on Nasdaq Stockholm.

Advisors
Carnegie Investment Bank is Global Coordinator and Setterwalls Advokatbyrå is legal advisor to the Company in the Offering.


For more information, please contact:
Anders Antonsson, Investor Relations
Tel: +46 709 994 970
anders.antonsson@serneke.se

Tomas Järund, Communications Manager
Tel: +46 704 455 087
tomas.jarund@serneke.se 

This information is information that Serneke is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was released for public disclosure, through the agency of the contact person above, on 31 October 2016, at 8:00 a.m. (CET).

Important information
This announcement is not and does not form a part of any offer for sale of securities.

Copies of this announcement are not being made and may not be distributed or sent into the United States, Australia, Canada, Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and accordingly may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and in accordance with applicable U.S. state securities laws. The Company does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States.

Any offering of the securities referred to in this announcement will be made by means of a prospectus. This announcement is not a prospectus for the purposes of Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the “Prospectus Directive”). Investors should not subscribe for any securities referred to in this announcement except on the basis of information contained in the aforementioned prospectus.

In any EEA Member State other than Sweden that has implemented the Prospectus Directive, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State.

This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.

Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” "continue," “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Serneke believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors, which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice.

Serneke is a fast growing corporate group active within construction, civil engineering, project development and property management. Serneke was established 2002 and today the Company has over SEK 3 billion in sales and more than 800 employees. Through innovative thinking, the Company drives development and create more effective and more innovative solutions for responsible construction. The Company builds and develops housing, commercial buildings, industrial facilities, public buildings, roads and civil engineering projects, and other infra­structure. The Company’s customers are both public and private and the operation is focused on the three greater areas of Gothenburg (Region West), Stockholm (Region East) and Malmö (Region South). The Company is headquartered in Gothenburg and has offices in Stockholm, Malmö, Helsingborg, Borås, Halmstad, Strömstad, Trollhättan, Varberg and Alingsås.

More information about Serneke can be found at www.serneke.group

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