Norwegian sporting goods retailer Megasport AS announce plans to launch an initial public offering of its ordinary shares and to apply for a listing on Oslo Børs and change its name to XXL ASA 1.

XXL claims to be is the fastest growing sports retailer in the Nordic region, with a consistent track record of strong store roll-out, revenue, EBITDA and net income growth. The company operates 39 large unit stores in Norway, Sweden and Finland, as well as an established e-commerce platform in all three countries. The company plans to double the number of stores over the next five years, as well as expand its online presence to offer a true multichannel experience. The company offers a unique customer proposition, through a wide range of high quality branded products, combined with a focus on customer service and a clear pricing strategy.

XXL has grown revenues from NOK 2,471 million ($441 mm) in 2011 to NOK 4,010 million ($681 mm) in 2013, representing a CAGR2 of 27.4% over the period. XXL was founded in Norway in 2001, successfully expanded into Sweden in 2010 and opened its first store in Finland in April 2014.

The IPO will position XXL for the next stage of its development by securing a strong long- term shareholder base that will support the company in its ambitious growth plans going forward. The current majority shareholders in the company, XIN Holding Guernsey Limited (an entity controlled by EQT V Limited, advised by EQT Partners, and Dolphin Management AS, intend to reduce their ownership stakes in the company in the IPO, while Dolphin Management intends to remain a major long-term shareholder.

 XXL has brought a new and unique sports retail concept to the Nordic market by offering high quality branded products at low prices, saud Fredrik Steenbuch, CEO of XXL. Our skilled employees are focused on delivering a shopping paradise for people interested in sports, outdoors and wildlife, for every season of the year.

We are proud of our strong track record of growth in revenues and profits and that our retail concept has proven successful not only in Norway but also in Sweden and most recently in Finland. We look forward to offering new shareholders the opportunity to join us in realising our ambition to become the biggest sports retailer in the Nordics. We are excited about the opportunity for all our employees to become shareholders in the company and take part in the development.

Øivind Tidemandsen, Founder and Chairman of XXL, and principal owner of Dolphin Management, said the IPO of XXL marks the commencement of a new and exciting era for the company.

Dolphin Management has been a strong supporter of the company since its founding and we are impressed by the employees and the management teams relentless focus on the business and solid execution of our strategy, Tidemandsen said. We are enthusiastic about the continued prospects for the company and look forward to welcoming new shareholders aboard.

We have seen the company more than double its revenues and profits, while successfully entering both Sweden and Finland, added Anders Misund, Partner and Head of EQT Partners Norway (Investment Advisor to EQT V). We believe the company has a bright future ahead as a listed company, and are excited about inviting new investors to join on the path towards market leadership in the Nordics, and in a new and important phase for the company.

Company Highlights

  • Leading and fastest growing player in the Nordic sports retail market
  • Large unit store format with wide range of high quality branded products
  • Low cost base supporting the companys aim of having the lowest retail prices in the Nordic sports retail market
  • Disruptive and scalable retail model driving efficiency and cost leadership, based on the large unit store format, fully owned value chain and efficient logistics
  • Powerful marketing to build strong brand name, support lower price message and increase customer loyalty
  • Strong position to expand its e-commerce offering as part of a true multichannel offering, providing a competitive advantage over pure online players
  • Strong company culture
  • Experienced and stable management team with retailing expertise and short line of command

The IPO will comprise a public offering to institutional and retail investors in Norway and a private placement to certain institutional investors internationally, where the current major owners in the company, EQT V and Dolphin Management, as well as other shareholders, intend to reduce their ownership in the company. Dolphin Management and EQT V will remain important shareholders after the IPO.

ABG Sundal Collier Norge ASA and Goldman Sachs International are acting as Joint Global Coordinators and Joint Bookrunners in the IPO; Carnegie and Credit Suisse are acting as Joint Bookrunners in the IPO and DNB Markets (a part of DNB Bank ASA) is acting as Joint Lead Manager in the IPO.