German artificial limb maker Ottobock plans blockbuster 2022 IPO -sources

Chronoscale

08/07/2021 16:46

By Arno Schuetze
    FRANKFURT, July 8 (Reuters) - Ottobock is preparing for a
blockbuster stock market flotation in 2022 that could value the
German artificial limb maker at more than 5 billion euros ($5.9
billion), three people close to the matter said. 
    The company, 80% owned by the founding Naeder family and 20%
by buyout fund EQT  EQTAB.ST , has asked banks to pitch for
roles in the initial public offering, which could become one of
the country's largest deals next year. 
    Ottobock, which was founded in 1919 as a maker of prosthesis
for World War One veterans, has repeatedly said it eventually
plans to go public, but has so far not commented on the expected
timing of a deal.
    "We want to be capital markets ready from 2022. Work towards
that milestone is ongoing," said a spokesman for the
Duderstadt-based company on Thursday, declining to elaborate.
    Ottobock's family owners and EQT declined to comment.
    The mandating of banks to prepare for an IPO often takes
place at least 3-6 months ahead of any deal, and final timing
depends on market conditions that need to be favorable for any
transaction to go ahead.
    The company makes prosthetics, orthotics, wheelchairs and
exoskeletons and in 2019 posted core earnings of 191 million
euros on sales of 1 billion euros. Last year, it saw revenues
drop as shops remained closed during the COVID-19 pandemic. 
    Listed peers include Ossur  OSSR.CO , Hanger  HNGR.N 
Invacare  IVC.N  and Ekso Bionics  EKSO.O . 
    According to market research, the global $6 billion
prosthesis and orthosis market is expected to grow by about 4%
annually as populations age and cases of injuries as well as of
diseases like bone cancer rise.
    While Ottobock has been considering an IPO for years, EQT's
stake purchase in 2017 at a valuation of 3.15 billion euros
delayed earlier plans. 
    Since the buyout group's investment, Ottobock has named
former Fresenius  FREG.DE  manager Philip Schulte-Noelle as
Chief Executive. 
    It has also sold off its plastic foam materials business to
Switzerland's Conzzeta and acquired businesses such as V!GO,
assets of peer Freedom Innovations and a stake in distributor
Cascade Orthopedic Supply.
($1 = 0.8431 euros)

 (Reporting by Arno Schuetze; Editing by Kirsten Donovan)
 ((arno.schuetze@thomsonreuters.com; +49 30220133648;))