Hemnet, the No. 1 real estate marketplace in Sweden, will be listed on Nasdaq-Stockholm later this quarter, the company announced today.
Owners including General Atlantic (60%), Sprint Capital (17%), and Care (11%) are the sellers. Hemnet is not attempting to gain more capital; instead, the owners are cashing in on their very lucrative investment. Hemnet was purchased at a valuation of SEK2 billion ($234.3 million U.S.) in 2016 and is now worth five times its initial value, or SEK10 billion ($1.2 billion U.S.).
Hemnet has experienced sales growth of 20.8% per year since 2018, reaching SEK 544.1 million ($63.7 million) in 2020. The growth has been driven by increasing listing revenues. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from SEK 138.1 million to SEK 202.1 million.
“Hemnet has developed into a ‘win-win’ value proposition for the entire housing market by creating the best possible experience and products for our visitors and business partners,” CEO Cecilia Beck-Friis said in a news release. “This has led to a strong financial track record with an annual average sales growth of approximately 21% between 2018 and 2020, and a 21% CAGR of adjusted EBITDA during the same period. I look forward to continuing building on our strong foundation as the No. 1 property platform in Sweden,”
Mäklarsamfundet, the industry organization for Swedish real estate agents, still owns 10% of Hemnet and it seems it will not sell out.
“Mäklarsamfundet has been a part of Hemnet’s journey from the very start, and we look forward to continuing our close partnership and creating value for the Swedish housing market together with Hemnet in the company’s important step,” said Anders Edmark, board chairman at Mäklarsamfundet and shareholder of Hemnet, in a news release.