Exciting Debut on the Stock Exchange: Pfisterer Bucks Trend with Successful IPO
Pisterer achieves a triumphant entrance on the arena floor.
The electrical engineering powerhouse, Pfisterer, has kicked off the year with a bang, making history as the first significant IPO of 2023. Despite volatile market conditions deterring many large corporations from going public, Pfisterer's shares shot up on their debut.
The shares started trading at 30 euros—a heartening 11% above the issue price. The stock subsequently rose to 31.25 euros before ending the day at 30.11 euros, marking a whopping 11.5% rise from the issue price. Pfisterer's CEO, Johannes Linden, expressed his satisfaction, stating, "We are extremely pleased with our stock market debut."
Family-owned, Pfisterer was valued at a impressive €489 million at the issue price. In total, 95 million euros of the €188 million raised during the IPO will go directly to the company, with plans to utilize these funds to drive growth and capitalize on emerging trends such as renewable energies and decarbonization.
Pfisterer's successful IPO demonstrates resilience amid challenging market conditions, as larger companies like pharmaceutical giant Stada and the Oldenburgische Landesbank chose to hold off on going public. Although Pfisterer is only listed in the "Scale" free trading segment, it adheres voluntarily to the stricter rules of the Prime Standard.
Established in Winterbach near Stuttgart, Pfisterer produces products for connecting and insulating electrical conductors at power network interfaces. With a workforce of 1200 employees, the company recorded sales of €383.1 million in 2023, marking a 15% increase compared to the previous year. The adjusted operating result (EBITDA) climbed by 24% to €64.4 million. The company aims for medium-term sales of €665-€735 million, with increasing margins.
As European stock exchanges endeavor to emerge from a slump and vie for IPOs with US counterparts, Deutsche Börse has championed the merits of a domestic listing for European issuers. Here are some key reasons why local listing remains advantageous:
- Enhanced visibility and inclusion in European benchmark indices, attracting more European investors.
- Alignment with regional markets and regulatory compliance, simplifying operations for EU companies.
- Reduced costs and fees, ideally suited for smaller or mid-sized corporations.
- Strong support from local investors, fostering stability and loyalty.
- Access to regional data and market insights, facilitating understanding of European trends and investor behavior.
Ultimately, Pfisterer's IPO serves as a testament to the benefits of embracing domestic listings, encouraging further growth and investment within the European market.
Source: ntv.de, jki/rts
- IPOs
- Deutsche Börse
- Stock Trading
In light of Pfisterer's successful IPO, the company plans to utilize a portion of the funds raised for vocational training programs, aiming to upskill its workforce and stay at the forefront of technological advancements in the electrical engineering sector. Additionally, Pfisterer has chosen to adhere to the stricter rules of the Prime Standard, demonstrating its commitment to maintaining a high standard of corporate governance and financial transparency in the community.
