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News 273 views last update:6 Aug 2012

Chr. Hansen IPO aims for $527 million

Danish food ingredients group Chr. Hansen said it aimed to raise a net 3.16 billion crowns ($527 million) in an initial public offering of new shares that marks a thaw in the Danish IPO market.

Chr. Hansen said in a statement it had set the price range for the offering at 87-117 crowns per share and the book building would run from May 25 to June 2 at the latest.
 
“We aim for a broad ownership, Danish as well as foreign (owners), institutional as well as smaller,” Chief Executive Officer Lars Frederiksen told Reuters.
 
The price range represents a valuation of around 16 to 20 times 2011 earnings which is in line with peers such as Danisco trading at more than 16 times earnings, a banking source close to the deal said.
 
The source also said demand is expected to come from funds seeking exposure to defensive sectors such as food, and bankers will visit investors in Europe and the United States with a road show.
 
Chr. Hansen, which makes cultures, dairy enzymes and natural colours for the food, health and animal feed industries in around 140 countries, was de-listed in July 2005 when it was bought by PAI Partners for 8.2 billion crowns.

Related item: Chr. Hansen goes public

Dick Ziggers

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