Springer Nature shares jump 6.7% in Frankfurt debut (updated)

Springer Nature AG & Co KgaA

04/10/2024 09:08

(Updates with background and quotes from paragraph 4)
    By Lucy Raitano and Hakan Ersen
       LONDON/FRANKFURT, Oct 4 (Reuters) - Shares in Springer
Nature  SPGG.DE  opened at 24 euros per share in its initial
public offering (IPO) in Frankfurt on Friday, 6.7% above where
it was priced and marking Germany's first listing in six months.
    The shares in the academic research publisher were priced at
22.5 euros per share earlier this week, giving the business a
valuation of around 4.5 billion euros. 
    Springer Nature's IPO will be watched closely by other
companies planning listings in Europe, after gains by new
offerings this year from Swiss skincare firm Galderma  GALD.S 
and private equity firm CVC Capital Partners  CVC.AS .
    CEO Frank Vrancken Peeters said his company had named the
IPO project Skywalker, after the character in the Star Wars
movies. "When the Force is with you, how can you not succeed?"
he said ahead of trading at the Frankfurt Stock Exchange. 
    The company and its bankers set a price range of 21 euros to
23.50 euros per share for the IPO last week, implying a market
capitalisation of up to 4.7 billion euros ($5.24 billion).
    IPO order books were covered some 30 minutes after opening.
    The publisher of science journal Nature and Scientific
American raised 200 million euros from the sale of new shares.
The total offer size was set to be around 600 million euros,
assuming the full exercise of a greenshoe option.  
    Primary proceeds from the listing are intended in part to
reduce Springer Nature's debt. Post-IPO, majority shareholder
Holtzbrinck Publishing Group, is expected to hold 50.6% of the
shares and existing shareholders BC Partners around 36%.
    Springer Nature said it intends to pay a dividend of 25
million euros ($27.5 million) for this year, and thereafter an
annual dividend of around 50% of annual adjusted net income.
    Its annual report shows its financial leverage ratio has
been cut to 2.9 times, from 4.6 times in 2019.
    The transaction was led by Deutsche Bank  DBKGn.DE ,
JPMorgan  JPM.N  and Morgan Stanley  MS.N .
    Springer Nature postponed its previous IPO plans in 2020 as
a result of the COVID-19 pandemic.
    In 2023, it reported group revenue of 1.85 billion euros and
adjusted operating profit of 511 million euros.

($1 = 0.8968 euros)
    

 (Reporting by Lucy Raitano and Hakan Ersen. Writing by Anousha
Sakoui and Emma Victoria Farr. Editing by Amanda Cooper and
David Evans)
 ((anousha.sakoui@thomsonreuters.com;))