EQT dealmakers' share sale hints at peaky markets - Reuters

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Luis, a NYSE-AMEX floor trader, works in an off-site trading office built when the New York Stock Exchange (NYSE) closed, due to the outbreak of the coronavirus disease (COVID-19), in the Brooklyn borough of New York City, U.S., March 26, 2020.

LONDON, Sept 8 (Reuters Breakingviews) - Swedish buyout group EQT’s (EQTAB.ST) rainmakers are taking some money off the table. The group’s partners have sold a 6% tranche of stock a year earlier than expected under a five-year lockup plan following an initial public offering in 2019.

The premature share sale will boost EQT’s free float, making its shares more liquid. But the stock’s recent super trouper trading may also be a factor. Even after Wednesday’s 5% price fall, it’s up almost 60% this year and has increased more than fivefold on its IPO price of 67 Swedish crowns. The group’s partners are sugaring the pill by committing half of the proceeds of the sale back into EQT’s funds. They also agreed to extend the lockup for the rest of their shares to as late as 2028, from 2024. But they have reserved the right to change that too. The winner really does take it all. (By Dasha Afanasieva)

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Editing by Neil Unmack and Karen Kwok

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

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