Shares in Swedish aluminium company Granges rose over 2 percent in early trade after the company's market debut on Friday, despite a backdrop of worries over global growth and faltering investor appetite for European listings. Shares in Granges, priced near the bottom of an initial range, traded at 43.40 crowns at 0758 GMT on Friday, up 2.1 percent from the offer price of 42.50 crowns. The wider Stockholm market was down 0.65 percent, falling for a fifth straight day.
Granges, Sweden's second initial public offering (IPO) after the summer holidays, comes to market after a spate of disappointing IPOs in Europe. In Germany, e-commerce investment group Rocket Internet and fashion retailer Zalando have lost about a sixth of their value since listing last week. French energy services firm Spie on Thursday postponed a planned sale of new and existing shares citing "volatile market conditions", while two Italian companies pulled IPO plans this week.
Granges makes rolled aluminium products for heat exchangers, mainly used in the automotive industry, and had sales of 4.6 billion crowns ($643 million) last year. The 42.50 crowns per share price gave the company a market capitalisation of 3.2 billion crowns, Granges said. Granges said Norwegian conglomerate Orkla, which is selling out of Granges as it focuses on consumer products, had sold 60 percent of Granges shares in the offering and may sell a further 9 percent through an over-allotment option.