Sweden Gets Its First SPAC, and Pension Funds Line Up to Invest

Sweden is about to get its first special purpose acquisition company.

Bure Equity AB, a Stockholm-based investment firm, is establishing a SPAC it says will be “adjusted” to the needs of the Swedish market. That means it will take on a more “long-term and industrial design” than SPACs in the U.S. tend to have, Chairman Patrik Tigerschiold said in a statement on Tuesday.

The announcement comes amid signs investors may be cooling to the construction, with the IPOX SPAC index down almost 20% since a February high. But Bure says it’s already secured cornerstone investors in the form of some of Sweden’s biggest pension funds, representing about 60% of the total shares, “post-offer.”

The purpose of Bure’s SPAC, ACQ Bure, is to do an initial public offering on Nasdaq Stockholm, and raise about 3.5 billion kronor ($410 million) in capital. Within 36 months, the plan is to acquire an unlisted company. Bure said it intends to invest 700 million kronor, or about a fifth of the total outstanding shares in the company after the offering.

Cornerstone investors include AMF Pensionsforsakring, AMF Fonder, The Fourth Swedish National Pension Fund, SEB Fonder, and SEB-Stiftelsen, Bure said. Nasdaq Stockholm has already assured Bure that ACQ fulfills “the applicable listing requirements” and the first day of trading is expected to be around the end of March.

SEB is the sole global coordinator and bookrunner, Bure said.

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