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Findexa Unveils NKr3.1bn IPO, Plans Generous Dividend Payout

Strategic Insights

— 2 min read

Norwegian yellow pages publisher Findexa has announced plans to list on the Oslo Stock Exchange through a NKr3.1bn initial public offering. The company, which holds nearly 97% of the Norwegian printed directories market, aims to pay dividends of up to 10.4% to its shareholders. This strategy is made possible by a tax-efficient structure developed in North America and now being introduced in Europe. Findexa's chief executive, Peter Darpo, attributes the company's ability to generate stable cash flows to its strong market position and consistent financial performance.

Key Takeaways:

  • Findexa plans to offer shares at a price range of NKr30 to NKr40 apiece, valuing the company's equity between NKr5.6bn and NKr6.6bn.
  • The initial public offering consists of NKr2.45bn worth of new shares and NKr0.65bn worth of existing shares, with proceeds to be used to pay down the company's NKr3.5bn debt.
  • Findexa aims to pay dividends of up to 10.4%, nearly four times the Norwegian average, effective annualized dividend for 2004 expected to be about NKr580m.
  • The company had revenues of NKr1.6bn in 2003 and earnings before interest, tax, depreciation and amortisation of NKr780m.
  • Findexa's tax-efficient structure, developed in North America, enables the company to offer high dividend payouts.
  • The offer period runs from May 5 to May 18, with listing on the Oslo Stock Exchange expected on May 19.
  • Joint global co-ordinators for the IPO are CIBC World Markets, Goldman Sachs, and UBS Investment Bank.
  • Findexa's IPO marks an exit for Texas Pacific, the US private equity group that acquired the company from Telenor in 2001 for NKr5.8bn.

Statistics:

  • NKr3.1bn (Dollars 456m): The total value of the initial public offering.
  • NKr30-NKr40: The price range for the offering of shares.
  • NKr5.6-NKr6.6bn: The valuation of Findexa's equity at the mid-price of the share price.
  • NKr2.45bn: The value of new shares to be offered.
  • NKr0.65bn: The value of existing shares to be offered.
  • NKr3.5bn: The level of debt Findexa aims to pay down with proceeds from the IPO.
  • NKr1.6bn: Findexa's revenues in 2003.
  • NKr780m: Findexa's earnings before interest, tax, depreciation and amortisation in 2003.
  • NKr580m: The expected annualized dividend for 2004.
  • 97%: Findexa's market share of the Norwegian printed directories market.

Sources:

  • "Findexa Unveils NKr3.1bn IPO, Plans Generous Dividend Payout" by Christopher Brown-Humes, The Financial Times (no date or exact source date)

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