Norva24 is a leader in underground infrastructure maintenance services in Northern Europe – that is the maintenance of all the infrastructure related to sewage and waste water. It is a Norwegian company, that has grown through the acquisition of smaller players over the years. In 2021, Henrik Damgaard, the company’s CEO at the time, led Norva24 to an IPO in Stockholm, joining a number of other so-called ‘M&A compounders’ listed there – but all in different industries.
With Henrik, we discuss all the specificities of the Norva24 IPO, such as his experience of managing an IPO in a new industry to investors, listing a Norwegian company in Sweden, with a Danish CEO, and the specificities of listing an M&A compounder.
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Disclaimer: this discussion is not financial advice, nor an investment recommendation, nor a solicitation to buy or sell any financial instruments, or an offer for financial services or any other transaction. The information contained in the recording have no contractual value and are destined for an informational purpose only. Amundsen Investment Management and the participants on this podcast may have holdings in the companies being discussed.
[0:41] Gautier Rousseau: Today, we talk with Henrik Damgaard, former CEO of Norva24, the Nordic leader in underground infrastructure maintenance services — that is, maintaining the infrastructure related to sewage, wastewater, and stormwater systems.
As they say on their website: “We empty where it’s full, open where it’s clogged, and flush where it’s dirty.”
Norva24 is a Norwegian company that has grown through the acquisition of smaller players across Northern Europe.
[1:04] Gautier Rousseau: In 2021, Henrik led the company’s IPO in Stockholm, joining a wave of M&A-driven “compounders” that listed there — albeit in a completely different industry.
With Henrik, we discuss the specifics of the Norva24 IPO: educating investors on a new industry, listing a Norwegian company in Sweden with a Danish CEO, and communicating the equity story of an active M&A compounder.
[1:52] Gautier Rousseau: Henrik, thank you very much for joining us today. It’s a pleasure to have you. Could you start by introducing yourself?
Background and Career
[1:59] Henrik Damgaard: Thank you, and thank you for having me. My name is Henrik Damgaard. I’m Danish and live in Kolding, Denmark, with my family.
Today, I’m CEO of KOMPAN, the global leader in producing, installing, and maintaining playgrounds and outdoor fitness areas. Before that, I was CEO of Norva24 for almost six years. During that time, we built the company from being primarily Norwegian to becoming a clear Northern European market leader — and listed it on Nasdaq Stockholm in December 2021.
Before Norva24, I worked at ISS, where I was COO, running divisions including cleaning, catering, and technical services.
The Norva24 Business
[2:47] Gautier Rousseau: Perfect. You were working at ISS before joining Norva24 — quite a different industry, but maybe with some operational similarities. Could you explain what Norva24 actually does?
[2:58] Henrik Damgaard: Definitely. I used to say that if you woke up one morning and the infrastructure maintained by Norva24 stopped working, you’d realize how essential it is — within minutes.
Imagine not being able to shower, brush your teeth, or flush your toilet, or looking outside after heavy rain to find flooded streets.
We maintain the infrastructure that provides clean water, removes wastewater, and manages stormwater. In short: we keep society’s hidden systems functioning.
Educating the Market
[3:44] Gautier Rousseau: You call this the “underground infrastructure maintenance” industry — but at the time of your IPO, this was new to most investors. Was it challenging to educate the market about such a niche and unfamiliar industry?
[4:15] Henrik Damgaard: Yes, absolutely. When you list a company, you must explain both the business and the industry. But in our case, we were listing an entire new industry — the underground infrastructure maintenance sector had never been listed before, to my knowledge.
So we had to educate investors not just on Norva24, but on the dynamics of the entire industry — what drives demand, its stability, and its importance. It was an extra layer of communication.
Introducing a New Sector to Investors
[4:45] Gautier Rousseau: Did that lack of listed peers affect valuation or investor appetite?
[4:56] Henrik Damgaard: It required more explanation, certainly. We had to draw parallels to similar business models in other industries — such as local service networks or technical maintenance providers — to help investors contextualize us.
When investors know an industry well, you can focus on your company’s edge. But when they don’t, education becomes the central part of the IPO process.
[5:27] Gautier Rousseau: And was investor interest mostly Nordic, or were you able to attract broader international attention?
[5:56] Henrik Damgaard: It was very international. We had strong interest from U.S., U.K., and German investors, in addition to Scandinavia. Because underground infrastructure exists everywhere, it’s a truly global industry — that helped investors relate.
Timing and Market Conditions
[6:17] Gautier Rousseau: You listed in December 2021 — right at the end of a record IPO year. How did that affect you?
[6:49] Henrik Damgaard: It was a very active market, but also a turning point. We were the last large IPO before the market changed dramatically over the winter of 2021–22.
Up until our listing, investors encouraged us to accelerate acquisitions — “why not do more?” — but a few months later, after the war in Ukraine and rising uncertainty, they began asking, “Are you sure you should still acquire so much?”
That shift perfectly captured how sentiment changed overnight.
Choosing Stockholm for the Listing
[7:46] Gautier Rousseau: You were leading a Norwegian company, based in Oslo, with a Danish CEO — but you chose to list in Stockholm. Why Sweden?
[8:23] Henrik Damgaard: Two main reasons.
First, we wanted to list in a market where investors were already familiar with M&A compounders — companies that grow through frequent small acquisitions. Stockholm has many such examples, like Lifco and Instalco, and a strong investor base for that model.
Second, Nasdaq Stockholm was (and is) the most active IPO market in the Nordics — deep liquidity and strong institutional interest.
So it was a natural fit, even though we reported in Norwegian kroner and were headquartered in Norway.
Private Equity Ownership
[9:46] Gautier Rousseau: Your main pre-IPO shareholder was Valedo Partners, a Swedish private equity fund. Did that influence the listing location?
[10:12] Henrik Damgaard: It certainly aligned well. Valedo was our majority shareholder, but the decision to list in Stockholm was made collectively by the board. The Swedish market understood both private equity exits and compounder models, which helped the process.
Investor Base and Cornerstones
[10:27] Gautier Rousseau: How well did you get to know your investor base during the IPO process?
[10:46] Henrik Damgaard: Quite well, considering everything was done via Teams because of COVID restrictions. We held a large number of virtual meetings during the roadshow.
Of course, you can only go so deep in that format — but we engaged meaningfully with cornerstone investors, several of whom were Swedish institutions, which was critical for the success of the IPO.
The M&A Compounder Model
[11:18] Gautier Rousseau: Norva24 is often described as an “M&A compounder.” What does that mean in practice?
[11:53] Henrik Damgaard: An M&A compounder consolidates a fragmented industry by continuously acquiring smaller companies — often regional leaders — and integrating them into a scalable group structure.
That’s exactly what we did at Norva24: building a European network in the underground infrastructure maintenance industry through steady, disciplined acquisitions.
Communicating M&A to the Market
[12:20] Gautier Rousseau: How did you communicate your acquisition strategy to investors, given that M&A can be complex to model publicly?
[12:48] Henrik Damgaard: It’s always a challenge. You can show your historical track record — how many companies you’ve acquired, what value they added — but you can’t show detailed pro forma figures due to listing regulations.
Private equity investors often see that data pre-IPO, but the public market must rely on your narrative and discipline. It’s important to prove that you can integrate acquisitions successfully, not just announce them.
Impact on Margins and Strategy
[14:05] Gautier Rousseau: Some acquisitions can temporarily dilute margins. Did being public change how you approached M&A?
[14:42] Henrik Damgaard: Not really. It’s true that acquisitions can affect margins, especially if the targets have lower profitability. But we didn’t change strategy.
A lower-margin target can still be a great acquisition if it’s strategic or synergistic. The key is long-term value creation, not short-term optics.
IPO Rationale and Capital Raising
[15:43] Gautier Rousseau: So if you didn’t change your M&A philosophy, what was the rationale for going public?
[16:10] Henrik Damgaard: Primarily to raise new capital and support further growth. The IPO allowed us to bring in new shareholders while retaining existing ones.
We wanted to strengthen the balance sheet and continue expanding toward our goal of becoming Europe’s leading player.
Private Equity Transition
[17:14] Gautier Rousseau: Did investors see this as a typical private equity exit?
[17:20] Henrik Damgaard: Hardly. Some asked, but most didn’t. The Swedish market is accustomed to PE-backed IPOs.
We raised primary capital to fund growth, and some existing shareholders sold a small portion to provide liquidity — but management, including myself, reinvested through the incentive program. It was clearly a growth IPO, not an exit.
Preparing for the IPO
[19:32] Gautier Rousseau: When you joined in 2018, did you already know an IPO might come?
[19:32] Henrik Damgaard: I knew it was possible. When you join a PE-owned company, ownership change is always part of the journey — whether to another fund or through a listing.
[20:07] Gautier Rousseau: How did you prepare for that?
[20:07] Henrik Damgaard: I had experience from ISS, a listed company, but not as CEO. The IPO was a major learning curve — an intense process for the whole organization.
I often described it as climbing a mountain range: you see the peaks you must reach, but there are clouds hiding the valleys — the details you only discover along the way.
The IPO Process
[21:41] Gautier Rousseau: What were those “clouds” — the things you couldn’t see at the start?
[21:57] Henrik Damgaard: The level of detail required. You know you’ll need an information memorandum, but you can’t imagine how many hours go into each disclosure, audit, and review.
It’s incredibly detailed work that you only understand once you’re in the middle of it.
Managing the Workload
[22:22] Gautier Rousseau: How do you manage that workload as CEO — preparing for an IPO while running the business?
[22:40] Henrik Damgaard: The key decision we made was to limit the core IPO team to as few people as possible. That way, the rest of the organization could stay focused on operations.
If you involve too many people, the whole company risks being distracted. Keep the IPO team small and focused.
Lessons and Reflections
[24:22] Gautier Rousseau: With hindsight, what would you have done differently?
[24:22] Henrik Damgaard: I would have loved to do the roadshow physically. Virtual meetings were efficient — we could meet investors in London, New York, and Frankfurt before noon — but you miss human connection.
When we later did physical roadshows, I realized how valuable that face-to-face interaction is.
Investor Relations and Communication
[25:54] Gautier Rousseau: How did you handle investor relations during and after the IPO?
[26:26] Henrik Damgaard: We hired a part-time IR advisor — very experienced in IPOs — and that worked well. The key isn’t the time allocation, it’s the experience. You need someone who knows the playbook, has done it before, and can anticipate what’s next.
Accounting and IFRS Conversion
[27:05] Gautier Rousseau: I remember the IFRS transition was a big project.
[27:39] Henrik Damgaard: Yes, moving from local GAAP to IFRS 16 was a major undertaking — especially with our multi-country setup. My advice: start early. Don’t leave it until the final months before listing.
Advice for Future CEOs
[28:04] Henrik Damgaard: Another tip: have an advisor who has done an IPO as a CEO, not just as a banker or lawyer.
Many advisors have seen hundreds of IPOs — but few have lived it from the CEO’s chair. Having someone like that to talk to makes a real difference.
And also: make time to reflect. During such an intense process, it’s easy to get caught in execution mode. For me, I’d find reflection time while running — that’s when ideas and clarity come.
Life After Listing
[29:48] Gautier Rousseau: After listing, how did life change — for you and the company?
[30:13] Henrik Damgaard: In the months after the IPO, everyone watches the share price every day. There’s curiosity, speculation — “why up today, why down yesterday?”
But after a while, it becomes the new normal. People learn that many factors are external. Still, it’s a visible daily measure that adds a new dimension to being public.
Engaging with Investors
[31:01] Gautier Rousseau: How did you find your interactions with public investors?
[31:24] Henrik Damgaard: I enjoyed them. Investors ask sharp questions and often share useful insights. Each roadshow gave me two or three concrete ideas to bring back to the company.
[32:06] Gautier Rousseau: Did your investor base change after the IPO?
[32:29] Henrik Damgaard: Yes. Some funds only invest after seeing several quarterly results, so we saw new investors coming in later — especially those looking for track record and stability.
Differences Between Private and Public Leadership
[33:40] Gautier Rousseau: You’ve now led both private and public companies. Are the required skills different?
[34:02] Henrik Damgaard: The biggest difference is communication.
In a listed company, you must communicate more — but you can’t share everything internally like before. For instance, pre-IPO I sent monthly performance rankings by EBITDA margin to all branches. Post-IPO, lawyers told me to stop, since staff could infer unpublished financial results.
So we shifted to quarterly internal updates aligned with public reporting. It’s more structured, less spontaneous.
Does Being Public Help?
[35:22] Gautier Rousseau: Do you think being listed makes a company better?
[35:51] Henrik Damgaard: I do. The process forces you to mature governance, structure, and discipline. Preparing for a listing professionalizes the company in many ways.
Of course, there are restrictions — but overall, it helps you evolve.
Final Reflections
[36:24] Gautier Rousseau: Any special memories from the IPO?
[36:40] Henrik Damgaard: The bell ringing. Celebrating with the team — internal and external — after such an intense process was incredibly rewarding. It marked both an end and a beginning.
[37:04] Gautier Rousseau: Would you do it again?
[37:13] Henrik Damgaard: Yes, absolutely. It’s demanding, but fascinating — you work with highly skilled people, face new challenges, and learn a lot about leadership under pressure.
[37:45] Gautier Rousseau: Now that you know how the mountain range looks!
[37:50] Henrik Damgaard: Exactly.
[37:54] Gautier Rousseau: Thank you very much, Henrik.
[37:56] Gautier Rousseau: Thank you for listening to IPO Stories.
In future episodes, we’ll host CEOs, CFOs, advisors, and other participants in the IPO process to learn from their experiences — like Henrik Damgaard today.
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