EQT Northern Europe, the private equity firm that owns RV and pleasure boat industry supplier Dometic Corp., cancelled its plans an initial public offering (IPO) of 15.7 million shares of Dometic stock.
EQT, based in Solna, Sweden, had planned to sell a 51% stake in Dometic to the investing public and for Dometic shares to trade on the Stockholm Stock Exchange.
EQT’ goal was to sell the Dometic shares for 190 to 240 Swedish kronor. One kronor is worth about 14 cents in U.S. currency, so EQT was hoping to raise the equivalent of $26.65 to $33.66 per share in U.S. currency at current exchange rates.
However, EQT reported that even though there were buyers for all of the shares being offered within the expected price range, the company concluded “demand from IPO investors was not found to be sufficient to ensure a successful post-IPO market for the shares.”
Despite the IPO cancellation, EQT reported, “Dometic continues to perform well with excellent prospects and EQT Northern Europe is committed to participating in the future development of Dometic as principal shareholder.”
Dometic’s primary businesses include refrigerators, air conditioners, heat pumps and awnings specially designed for use in RVs. Dometic entered the leisure marine refrigeration and air-conditioning markets when it acquired the U.S. firm, Taylor Made Environmental in July.
In 2002, Dometic purchased SeaLand, a major supplier of sanitation systems for pleasure boats, from Taylor Made.
EQT, Dometic’s parent, is funded by Investor AB, part of Sweden’s Wallenberg Group. Wallenberg has significant investment positions in other Swedish companies that compete in global markets, including home appliance manufacturer, Electrolux, a former Dometic parent; Ericsson, the mobile-phone company, and SAAB, an automobile and aerospace products manufacturer.