EQT, a pièce de réstistance among our Swedish financial institutions, is currently in the middle of an IPO and shares will begin trading on 24 september.
For outsiders, the inner workings of the PE firm have been more vague than the assembly manuaI for an IKEA Milsbo glass-door cabinet. Now they are opening the doors to institutional and retail investors, issuing new and existing equity at a €5.5 bn - €6 bn valuation.
Theres been a lot of buzz going around about EQT going public, most of it positive. On the other hand, there are those who compare it to Blackstone's bloodshed of a listing in 2017, where they managed to clock the peak just before the markets crashed. Today, investors are feeling jittery and tensions are rising as the titans, Trump, Xi Jinping and Greta Thunberg battle it out.
What do you guys think? Cashing out, or grasping at opportunity? Is going public a good move for PE firms in the long run?
It was bound to happen and I think a lot of the senior guys see this as an opportunity to start cashing in all their hard work. That is not to say I do not believe the IPO will be a success. EQT has done some of the best PE-deals in Scandinavia over the last decade and the management is solid with an extremely low turnover among key employees. If I was an institutional investors I'd probably participate in the IPO.
+1 SB for the IKEA reference!
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