Frankfurt The Mainz-based glass packaging manufacturer Schott Pharma expects a valuation of up to 4.3 billion euros in its initial public offering (IPO) planned for the end of September. As the company announced on Monday, shares will be offered in a price range of EUR 24.50 to EUR 28.50.
The papers come entirely from the ownership of the parent company Schott, which generates 849 to 987 million euros and remains the majority owner. Qatar Holding will subscribe to a €200 million package and act as a so-called cornerstone investor that will acquire up to five percent of the shares. The initial listing is scheduled for September 28th.
Schott Pharma is expected to be one of the largest IPOs of the year in Germany. In addition to Schott Pharma, the tank gear manufacturer Renk has already announced its debut, and the mobility service provider DKV (fuel cards) is also in the starting blocks for an initial listing on the Frankfurt Stock Exchange. German sandal maker Birkenstock is preparing for a debut in New York.
The Schott subsidiary’s customers include Biontech and Moderna, which use the packaging for their Covid vaccines. Schott is increasingly focusing on high-quality products that can be sold for premium prices.
With Schott Pharma, a high-margin, high-growth specialty business is coming to the stock exchange. In 2021, the company grew by a good eleven percent and in 2022 by 26.5 percent to 821 million euros. The margin based on earnings before interest, taxes, depreciation and amortization (Ebitda) increased from 22.6 percent in 2020 to 26.8 percent last year. In the medium term, Schott Pharma wants to grow its sales by around ten percent per year; the goal for the Ebitda margin is a value in the “lower 30 percent range”.
>> Read here: Schott Pharma officially announces its IPO
The company produces pharmaceutical packaging made of glass and plastic (polymer). These are ampoules, bottles and cartridges for storing medication, as well as syringes. “We are focused on drugs that are administered via injection,” Andreas Reisse, the company’s CEO, told Handelsblatt. “We supply storage and administration solutions for these, which often have an additional function.”
The competition is manageable. According to industry analysts, Schott Pharma, Stevanato – an Italian company listed in the USA – and the US group Beckton Dickinson share around 60 percent of the market. Beckton Dickinson almost only competes with Schott when it comes to syringes; the company has a wide range of products for hospitals, for example.
The US company West Pharmaceutical Services is also involved, but is also a partner of Schott Pharma. The company supplies, among other things, the stoppers for the bottles.
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