Shares in investment firm Bure Equity have failed to keep pace with the Silex euphoria, despite the market newcomer soaring to become the firm's second-largest holding following its post-IPO rally. This was the conclusion of an analysis published by Dagens industri on Wednesday.
According to ownership data service Holdings, the value of Bure's stake in Silex has surged to SEK 8.5 billion, compared to SEK 900 million just six weeks ago at the close of Bure's first quarter. Consequently, Silex has emerged as the second-largest position in the investment company's listed portfolio, trailing only Mycronic.
'Despite the Silex rally, Bure's stock is trading at lower levels than before the successful listing. This means that Bure's estimated discount to net asset value (NAV) - the gap between its market capitalization and its underlying assets - stands at 21 percent,' the paper writes.
Silex debuted on Nasdaq Stockholm on May 7. The stock posted triple-digit percentage gains during its first day of trading. While performance has been volatile since then, the shares are currently trading approximately 180 percent above the IPO price.
'For those who still seek exposure to Silex but missed out on the allocation, it may be time to capitalize on Bure's significant NAV discount to get a piece of the action. The same applies to those who were allocated Silex shares, are sitting on substantial gains, and wish to de-risk: sell Silex and buy Bure,' Dagens industri concludes.
Bure Equity AB is a Sweden-based investment company. The Company specializes in long-term owning, developing, as well as disposing listed and unlisted operating entities. Its holding portfolio comprises eight firms: Cavotec, an engineering group that delivers power transmission, distribution and control technologies to a range of areas; MedCap, which owns and develops companies involved in the Life Science sector; Mycronic, which designs and manufactures laser-based pattern generators that are used in the flexible electronics production; PartnerTech, providing product development, as well as production, logistics and aftermarket services; Vitrolife, a developer and producer of solutions for fertility treatment; XVIVO Perfusion AB, which focuses on organ, tissue and cell preservation in relation with transplantation; Investment AB Bure, which owns and manages leasing of locomotives; and Mercuri International, which offers sales and management training consultancy.
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