Schott is aiming for more than 860 million US dollars for the IPO of the pharmaceutical division
LONDON/FRANKFURT, Sept 6 (Reuters) – German glasses maker Schott AG intends to sell more than 800 million euros ($859 million) worth of shares in its medical division, a source familiar with the matter told Reuters in declared by Frankfurt’s largest IPO ( IPO) so far this year.
Schott Pharma, a maker of medical vials, on Wednesday announced plans for a stock sale of existing shares in its parent company, which remains the controlling shareholder.
The seller hopes the unit will be valued at around €4 billion when it goes public, which is about 15 times the expected 2024 earnings before interest, taxes, depreciation and amortization (EBITDA) of more than €260 million, the source said .
With the sale of shares, Schott Pharma would like to attract long-term investors such as pension funds and sovereign wealth funds. Plans are to officially begin accepting stock orders from mid-September, with a goal of finalizing a price for the deal by the end of the month, the source added.
Schott said it wants to supply packaging for a class of weight-loss drugs known as GLP-1. A surge in demand for this group’s best-known brand, weekly injection Wegovy, has overwhelmed manufacturer Novo Nordisk, but Schott declined to name customers.
Among other growth trends, Schott announced it will manufacture prefillable syringes for messenger RNA therapy, a technology being developed by BioNTech (22UAy.DE), Pfizer (PFE.N), and Moderna (MRNA.O) for their COVID-19 vaccines became .
Schott AG’s medical vial division decides to go public as the IPO market shows signs of improvement after a first wave of IPOs in Europe and the United States earlier in the summer.
German hydrogen company Thyssenkrupp Nucera (NCH2.DE) tried to take advantage of improved market sentiment by listing on the Frankfurt Stock Exchange in July, posting gross proceeds of 526 million euros ($565 million).
Bank of America (BAC.N), BNP Paribas (BNPP.PA) and Deutsche Bank (DBKGn.DE) are leading Schott Pharma’s IPO.
Schott Pharma, headquartered in Mainz, is focused on the injectable drug market, which is expected to grow at 9% annually through 2026, the company said.
The unit posted an 8.4% increase in revenue for the first nine months of the fiscal year with an EBITDA margin of 28%, according to the intention to float (ITF) announcement.
Vial makers have benefited during the pandemic as vaccine makers scramble for equipment while governments around the world scramble to vaccinate citizens against the coronavirus.
In the 2021 financial year, Schott Pharma recorded a “double-digit percentage” increase in sales to EUR 650 million, 3% of which can be attributed to COVID-19, according to a company statement.
In the 1890s, company founder Otto Schott invented heavy-duty borosilicate glass, a raw material for medical bottles.
($1 = 0.9311 euros)
Reporting by Pablo Mayo Cerqueiro in London and Emma-Victoria Farr and Patricia Weiss in Frankfurt; Additional reporting by Miranda Murray; Adaptation by Edmund Klamann, Jason Neely, Nick Zieminski and Mark Porter
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.