Apotea’s first trading day will be on Friday, December 6th. The subscription price has been set at 58 SEK per share, which corresponds to a market value of over 6 billion SEK. In 2021, the company was valued at over 10 billion.
“It feels very exciting! We have been preparing for a long time, and it is nice to see others’ interest in something we have built,” says founder and CEO Pär Svärdson to Placera.
It was in the spring that the online pharmacy felt ready to move towards the stock exchange. Pär Svärdson explains that the market is keeping an eye on Apotea’s listing:
“Many say they are watching us with interest because they hope we will open the listing window. It makes me proud that many are hoping we will be able to do that.”
But does that increase the pressure?
“People are triggered by different things. I find it fun.”
Will you open the IPO window?
“I will try to make Apotea as good as possible and judge the market less,” says Pär Svärdson.
“Nobody wants to sell”
The company will not raise capital in connection with the IPO, and the offering includes over 28 million existing shares, equivalent to 27.4% of the shares in the company. Current shareholders Laulima, Alecta Pension Fund, SEB Life International Assurance Company, Neudi Kapital, and Creades are selling a third of their holdings each, according to Pär Svärdson.
“In reality, no one wants to sell. We want to be listed but do not want to sell, which makes it a bit difficult. So everyone is selling about the same amount, roughly a third,” says Svärdson, adding:
“For me personally, I will definitely make money over time and all that. But it doesn’t make much of a difference to me as a person.”
“I am proud”
The H&M family Persson’s investment company Ramsbury Invest becomes a cornerstone investor along with Capital Group, Nordea Asset Management, WCM Investment Management, and AMF Aktiefond Småbolag. Together, they have committed to acquire shares in the offering at the subscription price for a total amount of 975 million SEK.
“Ramsbury is highly esteemed and has a very good reputation. It is clear that such a prominent company wants to invest in Apotea makes me proud. The whole group of cornerstone investors is very high class or very respected investors in various categories, which makes me proud.”
Earlier, there was speculation about whether Apotea would come to the stock exchange through Creades’ SPAC company Creaspac. Pär Svärdson confirms to Placera that the investment company led by Sven Hagströmer was interested.
“I think they would have liked to have Apotea in this SPAC. But at the same time, we felt that maybe it was not the best path for Apotea. Additionally, Creades is also a shareholder in Apotea. Looking at it from Apotea’s perspective, we thought that this slightly longer, more comprehensive process of going public on our own was better for us. There are more investor meetings, you educate the market better. In the three to five year perspective, I think it is a very advantageous, so it became a better way for Apotea.”
“It still sounds like Creaspac would have liked to see you come to the stock exchange through them?”
“Yes, but I think so.”
Creaspac did not find a company within the specified time frame and is therefore being wound down.
“Looking at acquisitions”
Apotea’s goal is to double its sales in the next 4-5 years.
“What do you think about the competition?”
“There is a whole palette of competitors around us, and I think we benefit from having a strong competitive situation. I believe that as a company, you grow and in the long run, you become stronger. It’s not so fun to run a 100-meter race if you didn’t have anyone to run with.”
Pär Svärdson says the company is looking at the larger competitors to try to gain market share, and at the smaller ones to see if they have services that Apotea could use.
“Are you interested in acquiring the smaller companies that you find have exciting services?”
“We have acquired a company in Norway, and it is a type of acquisition where you look at a geography, essentially an Apotea in another place. And that can be an exciting acquisition. Another exciting acquisition could be some form of adjacent segment or that kind of variant on an acquisition. But just looking to buy exactly the same as yourself to build volume, I often think is difficult. You should never say never, but I would think it is less likely.”
“It sounds like you are keeping an eye out for some smaller additional acquisitions or complementary acquisitions.”
“Yes, that could happen. It hasn’t happened so far, but it could definitely happen.”
Investing in Varberg
To be able to grow, the company is building a highly automated logistics center in Varberg. They will have access to the facilities in January and expect the first order to be shipped from there in the summer.
“The logistics center will allow us to deliver the same day in the West Coast region. We also get the opportunity to hire pharmacists on the West Coast, which is good for our growth. But it also gives us more capacity. Additionally, there is a significantly higher level of automation in Varberg, which means that our transaction costs can be reduced. It will be good for our profitability in the long run,” says Pär Svärdson.
For about two years, from the middle of 2021 to the middle of 2023, Apotea had capacity constraints. The construction in Varberg is a bit of a large suit, which means that Apotea will be able to continue to grow.
“With the logistics center in Varberg, we will be able to become a pharmacy twice as large.”
“No time to celebrate”
Pär Svärdson’s plan is to celebrate at the ringing of the bell on December 6th. Before that, he doesn’t have time.
“It’s Black Week this week, so we have quite a bit to do at work. This week, I think I will focus more on work.”
And speaking of work.
“Will you remain as CEO?”
“Yes, I will definitely stay on as CEO. I have the most fun job in the world. I think it’s great. Additionally, we are just at the beginning of our journey. If you look at the entire pharmacy market in Sweden and Norway, we are very small. Even though we are starting to become a fairly large company, it is an extremely large, very stable, and good market. So we have a lot left. I want to be on that journey.”
Pär Svärdson, Laulima, other board members and executives, as well as other existing shareholders, have committed to lock-up agreements. For Pär Svärdson, it is 1,080 days, Laulima’s commitment is 720 days.
For other board members and executives, the lock-up agreement is 360 days, and for other existing shareholders, it is 90 to 180 days.
Below is Apotea’s ownership list as of November 11, 2024. The list includes SBB’s former CEO Ilija Batljan and Jacob De Geer, who founded iZettle.
Apotea’s 20 largest shareholders before the IPO
Laulima AB (Pär Svärdson, other founders, and employees) – 43.2%
Alecta Tjänstepension – 19.7%
Neudi & Co AB – 5.16%
Creades AB – 4.88%
Filip Engelbert – 3.50%
Jonas Nordlander – 3.50%
Erik Lindgren – 2.77%
Ilija Batljan – 2.41%
Pär Svärdson – 2.31%
Tham Special Investment AB – 2.06%
Anders Eriksson – 1.55%
Jofam AB – 1.35%
Jacob De Geer – 1.04%
CM Nilsson Holding AB – 1.03%
Kjell Arvidsson (P&CS Invest AB) – 0.99%
Håkan Roos (RoosGruppen) – 0.90%
Albi Asset Management AB – 0.29%
Knut Faremo – 0.26%
Stjärnbro Gård Invest AB – 0.23%
Tigrim Capital AB – 0.18%
With Apotea’s upcoming IPO and plans for growth, the company is poised to make significant strides in the pharmaceutical industry. The strategic investments, commitment to innovation, and focus on expanding their market share indicate a promising future for Apotea and its stakeholders.