September 4, 2019 / 1:59 PM / 13 days ago

Swiss firms Selecta, SoftwareONE eye September IPO launches- sources

* Selecta, SoftwareOne looking to complete deal before Brexit

* Selecta to raise 1 bln CHF, SoftwareOne 1-1.5 bln CHF

* Firms will add to growing Sept IPO pipeline

By Arno Schuetze, Abhinav Ramnarayan and Oliver Hirt

FRANKFURT/LONDON, Sept 4 (Reuters) - Swiss firms Selecta and SoftwareONE are expected to both launch initial public offerings this month to raise at least 1 billion Swiss francs ($1.03 billion) each, several sources with knowledge of the transactions said.

Both companies are looking to avoid potential market volatility related to Britain's planned exit from the European Union, and so looking to complete the deals well before the Oct. 31 Brexit deadline, the sources said.

Selecta, an operator of vending machines, is expected to announce its intention to float later this month, said two bankers with knowledge of the situation, with the company expected to target a valuation of 3 billion Swiss francs.

Owner KKR is expected to put about a third of the company up for sale, suggesting a potential deal size of about 1 billion Swiss francs.

Selecta provides vending machines for companies like Starbucks and Lavazza for their self-service kiosks.

Credit Suisse, KKR Capital Markets, Citigroup and Goldman Sachs are working on the deal with the help of Berenberg, BNP and Jefferies, the two sources said.

BUSY IPO FRONT

SoftwareONE, an IT consultancy firm based in the Swiss town of Stans, is also looking to launch an IPO this month, said two sources familiar with that situation.

KKR owns 25% of the company while its founders own the rest. The 1-1.5 billion Swiss franc IPO is expected to consist mainly of existing shares, meaning the company would reap little or no proceeds from the listing.

In June, sources told Reuters separately that Credit Suisse, UBS and JP Morgan had been hired to advise on the deal, which is expected to value SoftwareOne at around 4 billion Swiss Francs.

European IPO volumes are at their lowest level year-to-date since 2012 as market volatility and worries about a flatlining European economy hurt investor sentiment and valuations.

Still, German IT firm TeamViewer and Swedish private equity firm EQT have both launched deals that are expected to price around the end of September, and bankers said the market is open for firms with strong growth and profitability prospects.

"I think it will be busy on the IPO front this September window - not crazy, but certainly busy, and there are a lot of quality names in the pipeline," said a syndicate banker working on some of the upcoming deals.

KKR and the companies declined to comment, while the banks also declined to comment or were not immediately available for comment. ($1 = 0.9745 Swiss francs) (Editing by Deepa Babington)

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