Private equity firm IK Investment Partners aims for a stock market listing this year of Swedish elderly care provider Attendo, which had sales of 9 billion crowns ($1.1 billion) in 2014, two people familiar with the matter said.
A listing of Attendo would follow that of healthcare provider and hospital operator Capio which has strongly outperformed the wider market since listing in June, topping a bumper six months for Swedish listings.
The sources said IK had hired banks SEB and Carnegie to lead the listing. IK, Attendo and the banks declined to comment. The sources declined to be identified because the plans are not public.
Uncertainty over Swedish policy toward corporate profits in taxpayer-funded public services such as schooling, healthcare and elderly care have made companies like Attendo a hard sell for years, but the successful listing of Capio showed there were investors willing to stomach such risks.
After some scandals, including the 2013 bankruptcy of education provider JB Education, politicians vowed to tighten rules on companies operating in care and schools, and while capping profits looks unlikely for now, uncertainty lingers.
Attendo, which employs around 18,000 and has more than 20,000 people in its care, made earnings before interest, tax, depreciation and amortisation of 960 million crowns in 2014.
Most of its revenues are generated in Sweden and Finland while it has smaller businesses in Norway and Denmark.
Private equity firm EQT said this month it was considering listing education firm AcadeMedia, having noted the success of Capio. Another source said Carnegie had been picked to lead that listing.