Sitowise is planning an initial public offering and a listing on Nasdaq Helsinki

Sitowise, a Nordic expert in the built environment with a strong focus on digitality, is planning a listing on the official list of Nasdaq Helsinki. Sitowise has over 1,900 experts from different fields, who thrive to develop more sustainable and smart living environments. In recent years Sitowise has had a rapid and profitable growth trajectory and is currently operating in Finland, Sweden, Estonia and Latvia. The objective of the contemplated offering is to support the implementation of Sitowise’s growth strategy.

Sitowise Group Plc (“Sitowise” or the “Company”), announces that it is planning an initial public offering (“IPO”) and a listing of its shares on the official list of Nasdaq Helsinki Ltd (“Nasdaq Helsinki”).

The objective of the IPO is to enable Sitowise to implement its growth strategy for example by strengthening Sitowise’s recognition and brand awareness among customers, potential future employees, investors and in the technical consulting sector in general. The listing would also enable the Company to access the capital markets to raise new capital to support its growth strategy and broaden its ownership base both with domestic and foreign investors. The listing and increased liquidity would also make it possible to use shares more effectively as a means of consideration in potential acquisitions and in incentive programs for personnel.

The planned IPO is expected to consist of a new share issue by the Company of approximately EUR 75 million (gross proceeds) and of a share sale by certain existing shareholders. The proceeds from the share issue are intended to be used for repayment of current debt as well as to support Sitowise’s growth strategy, including financing of acquisitions.

Pekka Eloholma, CEO of Sitowise, comments:

“At Sitowise, we work at the core of megatrends such as urbanization, digitalization and environmental sustainability that are shaping the world. This has been the right direction for us: we’ve been able to achieve strong and profitable growth, both organically and through M&A. Today we have over 1,900 engineers, software developers and other experts working towards a more sustainable future, who collaborate to make sure our customers achieve their goals. We believe that designing of sustainable and smart solutions represents the future. We are proud to be able to offer an attractive domestic and responsible investment opportunity for investors.”

Eero Heliövaara, Chairman of the Board of Directors of Sitowise, comments:

“Sitowise has been successful in executing its strategy. The management team has been able to anticipate and understand the needs of an urbanizing and digitizing world, and has through carefully targeted acquisitions supplemented the company’s expertise to respond to these needs. We believe in Sitowise’s capabilities to be able to offer solutions to the most critical and current challenges surrounding us. These challenges are global and therefore we consider that the company is excellently equipped for international growth. Listing of the company is the next logical step in Sitowise’s journey.”

Sitowise in brief

Sitowise is a Nordic expert in the built environment that offers sustainable design and consulting services. Sitowise operates in various size projects to enable more responsible and smarter urban development as well as smooth transportation. Sitowise offers its services in the following areas: Buildings, Infrastructure and Digital Solutions. Sitowise’s operations are primarily in Finland and Sweden, and the Company also has competence centers in Estonia and Latvia mainly serving Sitowise’s projects in Finland and Sweden. The Company’s net sales was approximately EUR 160 million in 2020 and the Company employs over 1,900 experts. Sitowise has high employee ownership, in addition to the largest shareholder Intera Fund III LP, the company has over 200 employees as owners.

Sitowise can offer its customers comprehensive and multidisciplinary solutions by combining expertise in design with smart digital solutions and in-depth knowledge of infrastructure and buildings. Sitowise’s broad competence base and service offering distinguish Sitowise as a versatile service provider. Sitowise can execute even large projects as the sole technical consulting provider. The Company does projects of various different sizes and is involved in more than 10,000 projects each year.

From the broad competence base, Sitowise believes to have an advantage over most competitors. In addition, Sitowise’s expertise in fire protection planning, high-rise buildings, acoustics and rock and tunnel engineering enhance its competitive advantage. Sitowise is also particularly strong in digital solutions, with approximately 160 in-house software developers and IT experts to satisfy the increasing need of its customers for digital consulting and tools.

Sitowise has a diverse customer portfolio from both public and private sector customers. Almost half of the net sales come from municipalities and state agencies. The other half comes from private sector customers and within it the two main customer segments are construction companies and housing cooperatives.

Sitowise has grown strongly organically and through acquisitions. The compounded annual growth rate of Sitowise’s net sales was 12.9 percent between 2018 and 2020. Simultaneously, Sitowise has been able to sustain its high profitability: its adjusted EBITA margin was 10–13 percent between 2018 and 2020 and in the same period its operating profit margin was 7–11 percent. Sitowise’s net sales and adjusted EBITA margin development as well as low organic investments have resulted in a strong operating cash flow, which is illustrated by strong cash conversion of over 80 percent between 2018 and 2020. A strong cash conversion creates good prerequisites for continued strong growth, acquisitions and/or distribution of dividends.