Affärsvärlden recommends subscribing to the IPO of power infrastructure company Linjemontage on Nasdaq Stockholm. The subscription price is SEK 46 per share and the first trading day will be 25 September.
Linjemontage is a services company that designs and builds substations and power lines. Its customers are electricity grid owners such as Svenska kraftnät and Vattenfall.
Affärsvärlden identifies four warning flags in the offering as part of the newspaper’s review of IPOs. These concern a high issue cost equivalent to 6.6 percent of the offering,
strange agreements between the company and the main shareholder, deficient information where the anchor investors are not named not in the prospectus, and hard-selling communication in the prospectus.
The newspaper nevertheless considers the subscription price to correspond to an attractively low valuation.
“Here and now, we nevertheless believe that the very positive market and the electrification trend overshadow the drawbacks concerning the company. The recommendation is to subscribe,” writes Affärsvärlden.
