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ISS listing most successful in decades
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March 14th, 2014
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ISS stock increased in value by 14 percent on its first day of trading
ISS enjoyed a stellar beginning to its flotation adventure after its share price shot up from 160 kroner to 182.5 kroner by the end of the day – an increase of 14 percent.
The result led to a market value of 33.9 billion kroner and propelled the Danish outsourcing giant up amongst the 20 companies with the most traded stock on the C20 index.
”This has been the largest listing in 20 years. They raised eight billion kroner and everything has gone according to plan,” Peter Garnry, a stock market strategist with Saxo Bank, told Politiken newspaper.
“They’ve set the price low, but not too low, and there have been no problems with the trading. They have good reason to be pleased.”
READ MORE: ISS brings flotation forward to Thursday following huge interest
Potential for more
In comparison, Vestas has a market worth of 44.2 billion kroner and Genmab 13.6 billion kroner, but there is a long way to go to catch leader Novo Nordisk at 546.9 billion kroner. All three companies are on the C20 index.
Garnry believes that the solid start could positively rub off on other Danish companies considering market flotations. Søren Løntoft Hansen, a stock market strategist with Sydbank, agreed.
“I think that the share-offer price was sensible,” Hansen told Politiken.
"It gave investors a good first day on the market. Those who have obtained shares before received the discount they were entitled to since they are financing ISS’s debt reduction."
Both analysts have great expectations for ISS stock, which Garnry believes could rise up to 220 kroner per share.
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