What is a contribution in kind?
A contribution in kind (apportegendom) is property contributed to a company as payment for new shares instead of money. It can be another company, a property, a machine or intellectual property. When shares are issued for a contribution in kind, it is called an issue in kind (apportemission), a type of new share issue.
Requirements under the Companies Act
To protect the company and its owners, the Swedish Companies Act sets requirements for contributions in kind: the property must be of use to the company and capable of reliable valuation. An auditor must review and give an opinion on the valuation, so the new shares are not issued at too high a value at other owners' expense.
Why it matters to investors
An issue in kind changes the ownership picture without bringing in cash. For an existing owner it means dilution, and the value depends on how reasonably the contribution was valued. That is why the auditor's opinion and the underlying valuation are important to understand.