Harvia Debuts on Nasdaq Helsinki at EUR 5.00, IPO Oversubscribed
By Arlene Scott
Correspondent, Research and Industry
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The Finnish sauna heater manufacturer priced its IPO at the bottom of its range on 21 March 2018, raising roughly EUR 45 million and valuing the company at EUR 93.5 million.
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Harvia Plc, the Muurame-based Finnish sauna heater manufacturer, began trading on the Helsinki Stock Exchange’s pre-list today at EUR 5.00 per share. The IPO was oversubscribed, priced at the bottom of its EUR 5.00 to 6.10 range, and valued the company at approximately EUR 93.5 million immediately following the listing. Official list trading begins 26 March 2018. (Ongoing coverage, stock chart, and the full acquisitions timeline live in our Harvia News hub.)
Proceeds go mainly to debt repayment
Harvia issued 9,014,436 new shares in the offering, corresponding to approximately 48.2% of the company’s shares and votes immediately following the IPO. The sale of existing shares accounted for another 6.7%. Gross proceeds of roughly EUR 45 million will be used primarily to repay existing debt and to fund growth investments.
CapMan, the Nordic private equity firm that acquired Harvia in 2014, remains a significant shareholder with more than 20% of outstanding shares. Two CapMan-managed funds held a combined 69.5% of Harvia before the IPO. The number of shareholders after the listing jumped to roughly 2,000.
Public capital for acquisitions
Harvia’s listing gives it access to equity capital that competitors like TyloHelo (privately held), KLAFS (privately held at the time), and smaller Estonian and Finnish heater makers cannot match.
The proceeds are earmarked for debt reduction, geographic expansion, and potential acquisitions. Harvia management has said that the fragmented European sauna market contains consolidation opportunities, and public capital gives Harvia the balance sheet to act on them.
EUR 60.1 million revenue in 2017
Harvia reported revenue of EUR 60.1 million in 2017, with adjusted EBITDA margins above 20%. The company employs some 365 people in Finland, China and Hong Kong, Romania, Austria, Germany and Estonia. Its product portfolio spans traditional electric heaters, wood-burning heaters, infrared cabins, and sauna controls. North America accounted for about EUR 3 million of 2017 revenue, roughly half of it through the barrel sauna maker Almost Heaven Saunas, a Harvia customer since 2013.
Harvia’s first post-IPO quarterly report, covering January to March 2018, is due in May 2018. Investors will watch whether Harvia can sustain its 20%-plus EBITDA margins while growing revenue at double digits in a category that has historically grown at GDP-plus rates.
Harvia events
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