German glassmaker Schott AG’s medical vials division, Schott Pharma, has announced its plans to launch an initial public offering (IPO) with a target valuation of up to 4.3 billion euros ($4.59 billion). The company is offering a 23% stake in Schott Pharma at a price range of 24.50 euros to 28.50 euros per share. The IPO aims to raise between 849 million euros and 987 million euros.
Schott’s IPO is set to be Germany’s largest this year, with Reuters reporting earlier this month that the company was targeting proceeds of at least 800 million euros. The IPO is expected to be completed by the end of September, with banks beginning to take stock orders from Tuesday.
As part of the investor roadshow, Schott Pharma will hold meetings in Frankfurt, London, and New York. Andreas Reisse, the CEO of Schott Pharma, expressed confidence in the company’s business model, track record, and growth ambitions, stating that they have received positive feedback.
Schott Pharma specializes in the market for injectable drugs, which is projected to grow at a rate of 9% annually until 2026. Qatar Holding LLC, the vehicle for Qatar’s sovereign wealth fund QIA, has committed to purchasing up to 200 million euros worth of shares as a cornerstone investor, representing up to 4.99% of Schott Pharma.
The IPO market is showing signs of improvement, with successful listings in Europe and the United States. Chipmaker Arm Holdings, backed by SoftBank, priced its IPO at the top of its indicative price range last week. German defence contractor Renk is also preparing to list on the Frankfurt Stock Exchange in the coming weeks.
Schott Pharma’s IPO is a significant development in the healthcare industry, highlighting the growing demand for injectable drugs and the potential for further growth in the market. The company’s decision to go public reflects its confidence in its business model and future prospects. Investors will be closely watching the IPO as they assess the potential for returns in the pharmaceutical sector.
More detail via Reuters here… ( Image via Reuters )