Stada Pharmaceuticals Set for Major IPO Amid Strong Investor Interest

Stada Pharmaceuticals, renowned for its over-the-counter medications, is preparing for a significant initial public offering (IPO) in Frankfurt, anticipated for April. The company aims to raise substantial capital, with potential valuations reaching between EUR10 billion and EUR12 billion, positioning Stada as one of the largest IPOs in Europe this year.

Peter Goldschmidt, CEO of Stada, has indicated that discussions with a wide range of investors from the United States, the United Kingdom, Europe, and the Middle East have been promising. The firm has reported a positive reception from potential backers as it gears up for this pivotal financial move.

Stada, home to well-known products such as Grippostad, Ladival sunblock, and Silomat cough syrup, is aiming to capitalize on its recent financial successes. The company reported a 9% increase in revenue for the previous year, totaling over EUR4 billion, alongside an 11% rise in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to EUR886 million.

Despite these positive trends, Goldschmidt acknowledged potential hurdles, particularly concerning the geopolitical climate, which could impact the timing and success of the IPO. The final decision to proceed with the IPO will depend on the prevailing market conditions.

The owners, private equity firms Bain Capital and Cinven, acquired Stada in 2017 for EUR5.3 billion and subsequently delisted the company. They plan to retain a stake in Stada post-IPO, having expressed intentions to not divest completely immediately. The exact number of shares that will be sold during the IPO remains undetermined.

Historically, large IPOs have been rare in Germany, with only a few companies going public in 2024, including the cosmetics retailer Douglas. Stada's management had previously considered other options, including a potential sale, but encountered challenges in those discussions.

Stada's growth trajectory has been supported by a series of acquisitions, although these have led to increased debt levels. The company has since divested from its Russian operations, which were viewed as a liability in light of the IPO plans. The upcoming IPO is seen as a strategic move to reduce debt and pave the way for future growth opportunities.

Goldschmidt emphasized a desire to strengthen Stada's rapidly expanding specialty pharmaceuticals division through licensing agreements. With reduced debt from the IPO, the company could explore larger acquisitions in the future, further enhancing its market position.