German medical vial manufacturer, Schott Pharma, debuted on the Frankfurt stock exchange, making a significant impact. Their shares opened at 30 euros each, exceeding analysts’ predictions, witnessing a surge of 10% within the opening moments.
About the company
Schott Pharma focuses on the market for injectable drugs. Based in Mainz, they expect this market to expand by 9% annually until 2026. They specialise in vials for mRNA vaccines, diabetes, and obesity medications. Notably, BioNTech and Moderna are among their clientele. The company operates production and sales units in 33 countries, maintaining a strong presence in Germany.
Details of the listing
The firm fixed its IPO price at 27 euros ($28.37) per share. Previously, on Sept. 18, a price range between 24.50 and 28.50 euros was announced. This price range gave them a potential valuation of up to 4.1 billion euros. The company aims to list a total of 34,641,362 shares, inclusive of over-allotments.
Andreas Reisse, Schott Pharma’s CEO, explained their decision to go public as strategic. The primary motivation was to gain access to capital markets. However, he clarified that currently, there’s no intention of raising more capital or exploring mergers and acquisitions.
Production investments and client base
Reisse emphasised their substantial investments in Germany, even amidst concerns surrounding Europe’s largest economy’s health. He mentioned the importance of producing high-value, highly automated products for successful investments in the country.
Post-IPO plans
Following the IPO completion, the group plans to keep the majority stake in the company. They intend to channel the funds raised from the listing to further propel the group’s growth and assist in their transition to green initiatives.
This IPO is a notable event. It’s the third new listing on the Frankfurt stock exchange for the year and is anticipated to be one of Germany’s largest.
Stakeholders and future prospects
The parent company, Schott AG, is offering a 23% stake in this IPO, while retaining the remaining 77% as a long-term shareholder. Qatar Holding LLC, under the sovereign wealth fund Qatar Investment Authority, has committed to purchase shares worth up to 200 million euros in this offering. This acquisition will give them nearly a 4.9% stake in Schott Pharma.
CEO Andreas Reisse emphasised the high demand for their leading drug containment solutions and delivery systems. He also highlighted the increasing interest from global investors, underscoring the company’s promising future.
The broader IPO landscape
Schott Pharma’s listing indicates a rejuvenated IPO market, following a prolonged dry spell. Post-summer, several companies in Europe and the US have decided to go public.
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