What’s going on here?
German wheelchair maker Sunrise Medical plans to list its shares on the Frankfurt
Stock
Exchange in a private placement, aiming to raise €240 million ($261 million) and offer a stake from private equity owner Nordic Capital.
What does this mean?
Sunrise Medical is leveraging its upcoming listing to reduce its net debt from 4.1 times adjusted earnings before
interest
, tax, depreciation, and amortization (
EBITDA
) as of March 2024 to a more manageable 2.5 times post-listing, with the goal of dropping below 2 times in the medium term. Nordic Capital, which acquired Sunrise Medical in 2015, will offer some of its shares for
sale
. The CFO mentioned that the company aims for a 30% to 40% free float post-listing, aligning with a surge of stock offerings in Europe, including Galderma and Puig.
Why should I care?
For markets: Europe’s IPO market gains momentum.
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