CEMIT appears in the news once again – this time with a feature in Finansavisen.
Nordea has provided substantial debt financing through their Start Up and Growth unit, against a guarantee offered by the European Investment Bank. This has significantly reduced the equity capital requirements of CEMIT. Rather than going for a public listing and a large IPO, CEMIT is now looking for a 100 MNOK private placement. The placement is led by investment banks SEB and Pareto.
“Loan financing for fast-growing, smaller companies has been difficult to obtain in Norway, especially when you have short credit history without pleadable assets. This is why the EU has established a guarantee scheme for banks that want to finance growth companies.” says Petter Berge, chairman of New Normal Group and financial advisor to CEMIT.
In an article released on Wednesday, the prominent business newspaper reviews how CEMIT has frozen its plans to list itself on the stock exchange as a public company. The original plan was to raise 200 million NOK to help with the commercialisation of the company. Yet, with a changing marketplace and some exciting investor opportunities, new plans have come forward.
CEMIT started as a consulting company for the construction of train and signalling systems. Before long, it had shifted into a software company selling IT-based continuous monitoring solutions to replace unreliable time-based maintenance. The company saw interest quickly rise and now aims for a turnover of 50 million this year – twice that of the previous year.
“With a large chunk of working capital financed by the loan through Nordea, CEMIT can have better relations with other banks that are offering collateral. So it changes our need for equity,” says Are Sandersen, CEO of CEMIT Group.
Read the full breakdown at finansavisen.no.