Results from Delfin’s product platform revamp as the new VapoMeter was released:
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Boreo’s competitor also going public
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Interesting. Given that it’s a company roughly the same size as Boreo when measured by EBITDA, and since Auroora’s net debt (even pro forma adjusted, €55.8m) is higher than Boreo’s, it will be interesting to see the valuation of Auroora’s share capital in the IPO.
If we move toward the upper end of the range mentioned in Auroora’s press release, or even close to it (=“Anchor investors have given their subscription commitments under certain customary conditions and on the condition that the valuation of the Company’s entire share capital before the proceeds from the IPO is at most EUR 115.21 million”), then Auroora is either severely overvalued in the offering or Boreo is severely undervalued in terms of market cap. Right?
So, in that sense, this listing could also be a good benchmark for Boreo; two companies operating in the same market with the same business model (ceteris paribus) cannot deviate very much from each other in terms of market valuation in the long run.
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The “Auroora’s net debt … is larger than Boreo’s” comment does not hold up under closer scrutiny.
At the end of 2025, Auroora appeared to have €51.0M in interest-bearing net debt. EBITDA was €11.5M and adjusted EBITA was €13.5M. Interest-bearing net debt / Adjusted Pro forma EBITDA was 2.1x. Boreo had the same 2.1x, and the reports show that, in a similar way to Auroora, acquired companies have been pro-forma’d into the EBITDA as if they had been owned for the full 12-month period.
When looking at the income statement and balance sheet, a quick calculation shows EBITDA of €12.5M (+ pro-forma adjustments), cash of €9.1M, and short- and long-term financial debt of €39.6M. To reach the 2.1x ratio, the pro-forma EBITDA must have been €14.5M. At this point, one could still say that the companies have the same amount of debt based on that ratio, but that would mean the person conducting the analysis would be closing their eyes to the fact that there is €30M in hybrids on Boreo’s balance sheet.
On the balance sheet, it is categorized under equity, but it would be self-deception to claim that this is not debt. If we add that €30M of additional debt to Boreo, we reach a net debt level of €60.5M (€9.5M more debt than Auroora), and the net debt / pro-forma EBITDA would be at a level of 4.17x. Boreo has more debt than Auroora, both in absolute and relative terms.
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In the loan comparison, a hybrid loan is formed between us.
A hybrid loan is, as its name suggests, a hybrid, meaning it falls somewhere between debt (foreign capital) and equity, but in terms of accounting and financing, it often behaves like equity. -In Boreo’s case, it will be clear by 2029 at the latest whether it will be converted into shares. If it is converted, Boreo’s debt will decrease by 10 million, and a dilution effect will occur instead.
If the hybrid is fully included in the debt level (as you do above), Auroora has 4.8 million euros less debt than Boreo (Boreo 60.6 - Auroora 55.8 = 4.8 M€). This difference does not explain the huge difference in market capitalization that would arise if the maximum range stated in Auroora’s announcement is realized, or if the final pricing is anywhere near it.
So the key point in what I wrote above remains: -With these plans, the upper range of Auroora’s share capital of 115 million is what banks and pension companies have announced they will acquire at most. Thus, the maximum market value of Auroora’s share capital planned in the offering is 2.4 times the market value of Boreo’s share capital formed on the stock exchange.
Two very similar companies are therefore valued at:
\-Boreo at a market capitalization of 47 million,
\-Auroora, if the plans are realized, at a market capitalization of up to 115 million.
So I will closely monitor how Auroora performs, because the values of such similar serial combiners cannot differ so much in the long run. The maximum difference in market capitalization (115 - 47) of 68 million cannot, in my estimation, remain that way for long; either Auroora will correct downwards, or Boreo will correct upwards. Or most likely, they will converge from both directions.
PS: A good article about Boreo in today’s Arvopaperi (Financial Newspaper). It includes a comparison to the peer group, and Inderes’ Olli Vilppo, as an expert, discusses the valuation issue comprehensively:
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Boreo: CEO Kari Nerg presents at the Redeye Serial Acquirers Conference 2026 – March 13
March 19 2026
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Boreo’s Finnish peer, Auroora, will have a market capitalization of approximately 155 million (all shares = old and new shares 29.9 million x 5.20 euros) at its offering price. Boreo’s current market capitalization is 44 million. So, the new peer has a considerable price premium – especially since, as discussed above – the companies are quite comparable.
- It will be super interesting to follow the stock prices of Auroora and Boreo in the coming weeks, especially once Auroora’s stabilizing bank’s measures end.
- Similarly, it will be interesting to see what recommendation Inderes gives to Auroora’s valuation, which is three times higher than Boreo’s. Then we’ll see what logic, if any, prevails at Inderes between the recommendations of the two peers.
EDIT 26.3.2026: The valuation multiples for serial acquirers by the Arvopaperi magazine analyst are as follows:
-Premium level: EV/EBIT 32-34
-Base level: EV/EBIT 18-23
-”Finland level”: EV/EBIT 12-16
Source: Viljo Hautala, Arvopaperi/Alma Insights, Factset, Listing Prospectus
With the appearance of a Finnish peer on the market, I did a little comparison of how Boreo and Auroora shares are valued:
Boreo EV = Market cap 46.51 M + Total Debt 39.60 M - Cash 9.10 M = 77.01 Million EUR
Boreo “EV formula incl hybrids” = Market cap 46.51 M + Total Debt 39.60 M + 30 M Hybrid instruments - 9.10 M cash = 107.01 Million EUR
Boreo ebit 2025: 8 Million
Boreo EV/Ebit: (77.01/8) = 9.6
Auroora EV “approximate”: Market cap IPO 155 M + Total Debt 55 M - Cash ? = 210 M
Auroora adjusted ebit: 7.7 M
Auroora EV/ebit IPO: (210/7.7) = 27
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Kari was asked if he finally sees the headwind in the Finnish economy turning, and Kari replied that a month ago the answer would have been an emphatic yes, but now the situation in the Middle East brings uncertainty. In the same context, he mentions that the order book at the turn of the year was almost 50% ahead of last year.
Of course, he also reminds that there will be costs for H1, e.g., from ERP (Enterprise Resource Planning) reforms, which means that the beginning of the year is not a so-called “home run”.
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