Background for the offering
The Company´s IT-infrastructure is an important competitive advantage and allows Movinn to deliver a high quality, flexible service and to scale the Company while maintaining a slim organization. However, upgrading apartments with furniture and inventory to fit into the Movinn concept requires investments why the historical growth has been predominantly bootstrapped and therefore capped. To benefit from the current growth momentum in the industry, and the opportunities that emerge from the Covid-19 pandemic, the Board of Directors has decided to have the shares of Movinn admitted to trading on Nasdaq First North Growth Market Denmark, and at the same time raise up to DKK 33 million. Since launch with one apartment in 2015, Movinn is now conceptually and operationally strong enough to take on new challenges. Movinn will aim for steady growth in domestic markets and in parallel initiate the expansion into new European markets.
Through the Offering, Movinn is expected to raise gross proceeds of minimum DKK 25 million and maximum of DKK 33 million and net proceeds of minimum DKK 21 million and maximum of DKK 29 million. The use of the proceeds will be allocated as follows:
• 70% - Expansion to new markets. The cost for setting up a new subsidiary with around 30 apartments (launch in new market) is approximately DKK 5 million, to cover launch investments and working capital in operations (manager, service employees, office).
• 10% - Sustain growth in domestic markets.
• 20% - Potential M&A activities.
Company overview
Serviced apartments are typically fully furnished units in town and city centers available for short or long-term stays. They normally provide hotel-style amenities, room service and housekeeping, and are frequently used by businesses to house their workers on a temporary basis. Movinn’s core business consists of renting serviced and furnished apartments to larger companies that need a temporary home for stationed employees. By being agile and innovative with a focus on technology to enable scaling of the business, while at the same time deliver on-demand, plug-and-play solutions for the new generation of consumers, Movinn embodies” Property as a service”, the latest trend in the real estate sector.
Business Idea
The Company’s business idea is to rent furnished and serviced homes, with high quality in every step of the process. Homes are rented out to clients such as larger companies and insurance companies, which need to house stationed employees and insurance customers temporarily. The rental period will typically be between 3-18 months. Apartments are primarily booked - and paid for - by companies (B2B) and are used mainly by talented foreign workers and local families in need of a temporary home.
Since 2015, Movinn has grown from 1 apartment to 279 apartments, covering Funen, East Jutland and Greater Copenhagen, making Movinn one of Denmark´s leading providers of serviced apartments. In parallel with the growth of Movinn´s core business, the Company has created an integrated supply chain, consisting of inhouse IT-products, own furniture production/brand, own linen laundry and in-house provision of all services. In addition, Movinn has created new services and revenue streams that act as self-employed brands and companies, in total five brands under the Movinn umbrella.
1. Movinn A/S (Serviced Apartments - live).
2. Movinn Coliving (Serviced Communities - live).
3. Collective Yoyo (Furniture Rental - live, website to be launched).
4. Aurnia (Furniture brand - supports the internal supply chain).
5. Movinn.io (IT products - supports the internal supply chain).
Operational Targets
The prospectus is available on https://investor.movinn.com/ and on www.vhcorp.se.
The prospectus may also be obtained by contacting Västra Hamnen Corporate Finance AB or Movinn A/S
Västra Hamnen Corporate Finance AB is financial advisor and Certified Advisor, and Lundgrens Advokatpartnerselskab is legal advisor to the Company. Jyske Bank acts as settlement and issuing agent, while Nordnet acts as selling agent in Sweden and Denmark.
The offering comprises a minimum of 2,314,815 and a maximum 3,055,556 new shares.
The offer price is DKK 10.80 per share. Brokerage commission will not be charged. Based on the offer price, Movinn´s market capitalization is expected to amount to a maximum of DKK 183 million after completion of the offering.
Applications to subscribe Offer Shares are to be submitted during the period of 14th of October to 27th of October 2021. Applications should be made by submitting the application form enclosed in the prospectus, which may also be found on the Company’s website. The application form must be submitted to the investor’s own account holding bank in due time to allow the investor’s own account holding bank to process and forward the application to ensure that it is in the possession of Jyske Bank no later than 4:00 p.m. (CET) on 27th of October 2021. Applications may also be submitted directly to the selling agent Nordnet no later than 11:59 p.m. (CET) on 27. October. Applications are binding and cannot be altered or cancelled.
In the event that the total number of Offer Shares applied for in the offering exceeds the number of Offer Shares, reductions will be made as follows:
(i) With respect to applications for amounts of less than DKK 250,000, reductions will be made mathematically. However, no individual allocations will be made for less than 400 Offer Shares.
(ii) With respect to applications for amounts of DKK 250,000 and up, individual allocations will be made
2.097.222 Offer Shares will be allocated to the Cornerstone Investors that have issued irrevocable subscription undertakings for a total of DKK 22,65 million, 68.96% of the maximum Offering.
| Pre-subscribers | New capital (DKK) |
| SPSW Capital GmbH | 9,000,000 |
| Polynom Investment AB | 3,000,000 |
| Jesper Langebro | 2,000,000 |
| Creative Opportunities AB | 1,500,000 |
| Olof Andersson | 1,000,000 |
| Soviva Technologies ApS | 1,000,000 |
| Oxhögens Fastigheter AB | 1,000,000 |
| Investin Advice Capital Globale | 1,000,000 |
| Gerhard Dal | 750,000 |
| Michael Zhan | 750,000 |
| Adel Koubaa | 750,000 |
| Jimmie Landerman | 500,000 |
| Jacob Holm* | 200,000 |
| Christian Scherfig** | 150,000 |
| Kristian Jensen** | 50,000 |
| Total | 22,650,000 |
| *Chairman of the board**Board Member |
The result of the offering and the final number of Offer Shares will be published on 28 Ocotber 2021. First day of trading on Nasdaq First North Growth Market in Denmark is expected to be 4 November 2021. The Company has applied for admission to trading under the symbol “MOVINN”. Admission to trading is conditional on Nasdaq First North Growth Market in Denmark approving the distribution of shares to investors, among other things.
It is expected that delivery against cash payment in DKK for the Offer Shares will take place on 2 November 2021 under the temporary ISIN code DK0061555885, to investors’ accounts with VP Securities A/S. The temporary ISIN code is expected to be merged into the permanent ISIN code DK0061555539 on 5 November 2021. All dealings in the Offer Shares prior to settlement of the offering will be for the account of, and at the sole risk of, the parties involved.
Completion of the Offering is conditional upon the Offering not being withdrawn. The Offering may be withdrawn by the Company at any time before the announcement of the result of the Offering takes place. The Offering may also be withdrawn if Nasdaq First North Growth Market Denmark is not satisfied that there will be a sufficiently broad distribution of the Shares to investors or if, for other reasons, the Shares cannot be admitted for trading on Nasdaq First North Growth Market Denmark. Any withdrawal of the Offering will be announced immediately through Nasdaq First North Growth Market Denmark.