On September 28, 2023, SCHOTT Pharma celebrated its successful stock market debut in Frankfurt. After being promoted to the SDAX, the preliminary figures for the past financial year were also convincing. Things could continue like this for Mainz in the new year.
• Largest IPO in 2023
• SCHOTT Pharma with successful stock market debut
• Promotion to SDAX, strong business figures
2023 was a bad year for IPOs – while the number of IPOs worldwide was well below the previous year’s level, their overall volume was also significantly lower. However, one company from Mainz stood out: SCHOTT Pharma, the pharmaceutical division of the specialty glass manufacturer SCHOTT. In August 2022, the pharmaceutical business of SCHOTT AG, which is wholly owned by the Carl Zeiss Foundation, was spun off. While the headquarters is still in Mainz, an important production site is located in Müllheim, Baden. In total there are 16 production units in 14 countries. SCHOTT Pharma produces, among other things, syringes made of glass and special glass plastic, ampoules and bottles for the medical sector.
Successful IPO in Frankfurt
SCHOTT management had already mentioned in 2022 that it was considering an IPO for the pharmaceutical division. On September 28, 2023, the time had come: the stock market debut on the Frankfurt Stock Exchange. “It is the right time for us, the market is stable and we have received very positive feedback from investors,” said CFO Dr. Almuth Steinkuehler quoted by the German Press Agency. The IPO gives the company greater entrepreneurial flexibility and “visibility – in the market, but also among employees. And it gives us access to the capital market.”
While the issue price had previously been set at 27 euros, SCHOTT Pharma ultimately launched on the Frankfurt stock exchange with an initial price of 30 euros. The offer range was originally between 24.50 and 28.50 euros, but was shortened to 26.50 to 27 euros by the supervising banks on the eve of the IPO. “Especially in the current rather difficult overall market environment, the shares can hold their own well above the placement price of 27 euros,” market observer Andreas Lipkow commented on the IPO. And further: “Overall, defensive industries and sectors are currently very much in the focus of investors.” Bank of America and Deutsche Bank were among the leading banks, and Citigroup was also involved in the allocation and placement of the shares.
Both market participants and the company itself were extremely satisfied with the first trading day. “With such a price increase, it’s a great start for us,” CFO Steinkuehler was quoted as saying by the German Press Agency. After the price had temporarily climbed to 32.24 euros on the first trading day, it ultimately closed at 31.30 euros, which was still an increase of almost 16 percent compared to the issue price.
This meant that the pharmaceutical department of the Mainz-based glass manufacturer SCHOTT was able to complete the largest IPO of the past year in Germany.
Inclusion in SDAX and strong results
On December 18, 2023, the SCHOTT Pharma shares were included in the SDAX. “Following our successful IPO just over two months ago, the inclusion of SCHOTT Pharma in the SDAX shows that investors have confidence in our business model and see the potential of our company. We look forward to building on this milestone from the increased visibility to benefit from the global capital markets and to continue pursuing our strategy,” Andreas Reisse, CEO of SCHOTT Pharma, is quoted as saying in the corresponding press release. “We experienced a fantastic price jump on the day of our IPO and are now pleased about being promoted to the SDAX. We are still well on the way to achieving our growth goals,” emphasized Dr. Stone cooler.
The last financial year, which covers the period from October 2022 to September 2023, was also quite strong, as it turned out on December 19th when the preliminary figures were presented. The Mainz company benefited from the expansion of its manufacturing capacities for “high-margin, high-value solutions,” as SCHOTT Pharma reported. Revenue rose by nine percent to 899 million euros in the 12 months to the end of September compared to the previous year, meaning the pharmaceutical company was able to achieve the upper end of its own forecast. Meanwhile, EBITDA also increased by nine percent to 239 million euros, and the EBITDA margin was 26.6 percent.
Chief Financial Officer Dr. Based on the developments, Almuth Steinkuhler was also confident about the next financial year: “We are very pleased to be able to show that we are keeping our promises and achieving the growth targets that we recently set for ourselves as part of our IPO! Our strong growth and the high Profitability not only continues to demonstrate our attractive financial profile, but also confirms our strategic orientation towards pharmaceutical trends and the fast-growing market for high-value solutions. We are therefore extremely confident both for the coming financial year and for our medium-term goals.”
In response to the successful result, SCHOTT Pharma shares rose by 1.24 percent to 32.60 euros by the end of trading on December 19th. According to the company, the full annual figures for the 2022/2023 financial year are planned for a press conference on January 26, 2024. These are likely to provide further insight into both the financial and non-financial performance of the company.
Confident prospects for 2024
SCHOTT Pharma already has some plans for the new year 2024. The company is now investing, among other things, in the expansion of its global production network. The expansion strategy is based on “growing market demand,” the company emphasized. Therefore, a new location is now being built in Jagodina in central Serbia for a double-digit million euro amount. The groundbreaking ceremony took place at the end of December 2023, and preparations for the start of production are scheduled to begin in 2024, according to a press release from SCHOTT Pharma. “With this step we are strengthening our presence in Europe, improving our competitiveness and increasing our production flexibility to meet the needs of our customers in the region,” explained CEO Andreas Reisse.
The SCHOTT Pharma share is currently worth 31.80 euros (as of: closing price on January 19, 2024). Since its successful stock market debut, the stock has increased by over 17.78 percent compared to the issue price of 27 euros. The pharmaceutical company is also valued at 4.79 billion euros. The Mainz team will now have to show in 2024 whether this high rating is justified. In any case, the company itself is extremely optimistic.
Editorial team finanzen.net
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