Nobia Raises SEK 1.5 Billion in Fully Subscribed Rights Issue

Nobia AB ( (SE:NOBI) ) just unveiled an update.

Nobia AB has completed a fully subscribed rights issue of approximately SEK 1.5 billion, with about 98.5 percent of the 841.3 million new shares taken up through subscription rights and the remainder allocated to investors without rights. The strong demand means underwriting commitments from major backers Nordstjernan and If Skadeförsäkring were not utilized, while the company’s share capital and total number of shares will increase significantly as the new stock is registered and begins trading later in March.

Management says the oversubscribed issue materially strengthens Nobia’s balance sheet and signals robust shareholder confidence in its strategy to focus on core Nordic markets, leverage its new Nobia Park factory in Sweden, and build on established brands with higher-margin positions. The proceeds, raised at a subscription price of SEK 1.78 per share, are intended to provide the financial conditions for profitable growth and improved competitiveness in the Nordic kitchen segment, though a modest portion will go to issue costs and fees to the guarantors.

The most recent analyst rating on (SE:NOBI) stock is a Sell with a SEK2.00 price target. To see the full list of analyst forecasts on Nobia AB stock, see the SE:NOBI Stock Forecast page.

More about Nobia AB

Nobia AB is a Scandinavian kitchen manufacturer and retailer that develops, produces and sells kitchen solutions under brands such as HTH, Norema, Sigdal, Invita, Superfront and Marbodal in Scandinavia and Novart in Finland. The group employs about 2,000 people, generates around SEK 5.6 billion in annual net sales, and its shares trade on Nasdaq Stockholm under the ticker NOBI.

Average Trading Volume: 4,409,499

Technical Sentiment Signal: Strong Sell

Current Market Cap: SEK3.34B

For an in-depth examination of NOBI stock, go to TipRanks’ Overview page.