CEVA raise £890m in flotation on Swiss market

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CEVA Logistics has raised CHF 1.2 billion (£890 million) as a result of its flotation on the SIX Swiss Exchange in Zurich.

Chief executive Xavier Urbain said: “Our aim was to raise 1.2 Bn CHF through the all-primary IPO to strengthen the balance sheet of our company – this objective is 100 per cent achieved. It unlocks additional growth potential with existing and new customers.

As part of the flotation, container shipping line CMA-CGM has acquired a 24.99 per cent stake in CEVA. CMA CGM’s investment amounts to 379 million CHF.

“Having CMA-CGM on board as a shareholder is a sign of confidence and opens up new perspectives for us in the development of complementary services that meet the growing customer demand for integrated end-to-end solutions and one-stop-shop providers,” said Urbain.

The IPO will allow CEVA to reduce its debt. In 2017, the company had net debt of $2.1 billion, up from $1.9 billion the year before. In 2017, it had a net finance expense of $258m.

The IPO involves CEVA Holdings LLC merging with CEVA Logistics AG, based at Baar in Switzerland, which will become the new holding company. Most of the company’s executive board are already based in Baar, which is a 20 mille drive from Zurich.

Prior to the flotation, the three largest shareholders were investment funds managed by affiliates of Capital Research and Management Company, Franklin Advisors, Inc and Apollo Global Management. They said they would maintain an investment in the company after the IPO and have agreed to a lock-up period of 180 days.

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