SBB - comment
SBB is going down the IPO route for the Residential business; the company may have failed to find a strategic partner willing to pay up or may want to retain control. Movement on the IPO is positive. Resi assets are SEK24bn (total assets SEK27bn, including SEK3bn in building rights) and SEK12.8bn in debt (LTV 43% on Total Assets). If SBB can get 1x book valuation, the equity value will align with our estimates (before fees), but an IPO process is unpredictable in valuation. SBB’s decision to float only 49% of the business was less than we had hoped, and retaining control and consolidating the residential assets goes against the simplification mantra. However, consolidation may help with SBB’s LTV if rate cuts boost residential asset valuations. We will update our model when we see the full IPO documents.