ISS looks to raise $1.1bn through stock market float

ISS, which employs 530,000 people in more than 50 countries, is joining Copenhagen’s Nasdaq OMX exchange in the Nordic region’s largest flotation since Sweden’s Telia went public in 2000.

The company has set a price range for the shares in its initial public offering of between DKr140 and DKr175, implying a value of up to DKr31.7bn. The offer period will run from March 5 to March 14, with the shares listing later this month, ISS said.

ISS is controlled by Goldman Sachs and by EQT Partners, a Swedish private equity firm, which will offload part of their combined 73% stake through the IPO. Smaller shareholders include the Ontario Teachers’ Pension Plan and the Kirk Kristiansen family, the family who founded the Lego toy business.

In addition to cleaning, ISS provides catering, security, landscaping and front-of-house services to companies around the globe. Its clients include banks and technology companies, as well as hospitals and schools in the public sector. Last year, it generated underlying profit of DKr1.03bn from sales of DKr78.5bn.

Jeff Gravenhorst, chief executive, said: "Since we announced our intention to launch an IPO, we have received very positive feedback from both potential investors and other stakeholders. 

"Following another set of solid financial results, ISS is well positioned for a listing on the stock exchange and we look forward to inviting new shareholders into the ownership structure and building strong relationships with them,” he said.

EQT and Goldman Sachs bought the Copenhagen-based company for DKr21.9bn (€2.9bn) in 2005 and have had to hold their investment longer than anticipated. They are planning to sell 1m shares in the IPO, enough to cover their costs.