Pfisterer's Successful Debut: First IPO of the Year in the Electrical Engineering Sector
Pisterer scores a victory in the main chamber for his initial performance
In the midst of volatile stock markets, stainless steel electrical engineering specialist Pfisterer boldly breaks through the silence, marking the year's first significant Initial Public Offering (IPO). The company's shares made a spectacular debut on the Frankfurt Stock Exchange with an opening price of 30 euros, a whopping 11% above the issue price. As the day progressed, the shares reached a high of 31.25 euros before trading ended at 30.11 euros, resulting in a closing increase of 11.5% compared to the issue price.
"We're effing thrilled with our stock market debut," stated CEO Johannes Linden. The family-run company, valued at an impressive 489 million euros at the issue price, stands to realize 95 million euros out of the 188 million euros raised from the offering. Linden goes on to say, "With the funds from the IPO, we'll continue to fuel our growth journey and surge ahead in global megatrends like renewable energies and decarbonization."
Having successfully managed to negotiate the first major IPO in Germany this year, Pfisterer has set the stage for other large companies such as pharmaceutical giant Stada and Oldenburgische Landesbank, who've previously hesitated due to volatile markets, to follow suit. Despite being listed in the free trading segment, "Scale," Pfisterer has voluntarily committed to the stricter rules of the Prime Standard. Located near Stuttgart, Winterbach's finest employs 1,200 people and generated sales of 383.1 million euros in the last fiscal year, marking a 15% increase from 2023.
Impressively, the adjusted operating result (EBITDA) skyrocketed by 24% to 64.4 million euros. Over the medium term, sales of 665 to 735 million euros are projected, with an increase in margins. A total of 6.97 million shares were allocated at 27 euros, landing squarely in the middle of the price range of 25 to 29 euros. Approximately 38.5% of the shares will be in free float moving forward, with the remaining shares held by the family shareholders Karl-Heinz Pfisterer and Anna Dorothee Stängel.
Amidst a slump in major European stock exchanges, the Deutsche Börse is actively exploring means to revive the market and compete with the USA for IPOs. According to documents distributed to German companies and IPO advisors by Deutsche Börse, going public in the USA poses risks such as weak stock performance, higher costs, and litigation risks. European companies with a U.S. listing have tended to see weaker performance than the overall IPO cohort on their first trading day and thereafter.
All in all, considering the advantages of a domestic listing on the Deutsche Börse, such as market access and visibility, regulatory environment, costs and fees, market sentiment and performance, and support for growth, European companies may find it preferable to list in Germany over the U.S. However, the final decision depends on each company's strategic objectives and target market.
Sources: ntv.de, jki/rts
- IPOs
- Deutsche Börse
- Stock trading
In light of the advantages provided by a domestic listing, such as market access, regulatory environment, and lower costs, Pfisterer's decision to list on the Deutsche Börse, instead of the US stock market, might attract other large European companies like Stada and Oldenburgische Landesbank to follow suit, considering the improved market sentiment and performance for domestic listings. With the proceeds from the IPO, Pfisterer plans to strengthen their growth journey in global megatrends like renewable energies and decarbonization, offering vocational training to their workforce and focusing on community policy to foster a conducive work environment, contributing to a robust financial future for the company.
