Schott Pharma debuted on the Frankfurt stock exchange on Thursday at 30 euros per share, trading well above analyst expectations. Shares of the corporate were up 10% in the primary minutes.
The medical vial manufacturer set its final offer price at 27 euros ($28.37) per share Wednesday, after the corporate announced a spread of between 24.50 and 28.50 euros on Sept. 18, giving it a valuation of as much as 4.1 billion euros.
Going public with an element of the corporate’s shares was “a strategic decision,” Schott Pharma CEO Andreas Reisse told CNBC on Thursday.
“The major reason is that we have now the chance to access … the capital markets, that was the major driver for the choice,” Reisse said.
He added that Schott desired to “have the identical means as [the] competition,” at the same time as there aren’t any current plans for raising extra capital or moving ahead with mergers and acquisitions.
The corporate said it will list 34,641,362 shares in total, including over-allotments.
Schott Pharma said sales were up 8.4% year-on-year for the primary nine months of the 2023 fiscal 12 months, hitting 670 million euros ($704 million) over the period.
The corporate produces vials for mRNA vaccines, diabetes and obesity drugs and counts BioNTech and Moderna amongst its clients. Schott Pharma has production and sales units across 33 countries.
Schott Pharma produces in Germany and has “invested heavily” in the country, Reisse said, despite recent concerns over the welfare of Europe’s largest economy.
“Germany is unquestionably not essentially the most easy place to provide … It must be high value products and this must be highly automized … Then I’d say you possibly can still invest in Germany, then it is also place,” Reisse told CNBC.
The group said it’ll retain a majority stake in the corporate following the completion of the IPO and plans to make use of money raised through the listing to “further speed up the Group’s growth and support its green transition.”
The Schott Pharma IPO is simply the third recent listing on the Frankfurt stock exchange this 12 months and is anticipated to be one in all the biggest in the history of Germany.