Stada Arzneimittel AG's IPO Delayed Until September Amid Market Volatility

German drugmaker Stada Arzneimittel AG's IPO has been pushed back until September due to recent market volatility, according to sources. Bain Capital and Cinven, the private equity owners, had originally planned to launch the share sale this week. The listing was expected to value the company at around €10 billion and kickstart IPO activity in Germany. Deliberations are ongoing, and details could still change. Representatives for Bain and Cinven declined to comment.

The highly anticipated initial public offering (IPO) of German drugmaker Stada Arzneimittel AG has been postponed until September 2023 due to recent market volatility, according to sources familiar with the matter [1]. The private equity owners, Bain Capital and Cinven, had initially planned to launch the share sale this week, with an expected valuation of around €10 billion [1].

Stada, a consumer health-focused drugmaker, has been holding meetings with potential investors in Europe and the US to gauge interest in the IPO [1]. The size of the deal could increase if the private equity firms decide to sell some of their existing shares in the offering [1]. The IPO would rank as one of the largest healthcare transactions in Europe in recent years and could potentially raise around €1.5 billion [1].

The political turmoil in Germany and a snap election early next year could bring uncertainty to the IPO plans [1]. However, a growing number of German firms are gearing up to go public despite concerns over the country's economy [1]. Pfisterer Holding SE, a German manufacturer of high-voltage cable insulators, and online car-parts dealer Autodoc DE are also seeking to list in 2025 [1].

Stada manufactures and sells a range of products, including consumer health-care items, generic drugs, and specialty medication for rare and chronic diseases [1]. Its brands include Grippostad, which helps treat colds and flu infections, and Hirudoid cream for bruises and hematoma [1].

The delay in Stada's IPO follows negotiations over a sale to rival investment firm GTCR that cooled [1]. JPMorgan Chase & Co., Morgan Stanley, Deutsche Bank AG, and Goldman Sachs Group Inc. were tapped to lead the first-time share sale, while other banks were added as bookrunners [1].

References:
[1] Alex Kraus, "Stada Sounding Out Investors Ahead of €1.5 Billion Plus IPO," Bloomberg, December 11, 2023. https://www.bnnbloomberg.ca/investing/2024/12/11/stada-sounding-out-investors-ahead-of-15-billion-plus-ipo/