A public listing can open up a wealth of opportunities for companies – including most significantly, by giving them exposure to a broader and international investor base, who they may have previously been unable to access.
This is one of the main reasons why Aluflexpack listed on SIX Swiss Exchange in June 2019.
The ability to raise capital from public market investors is critical for companies like Aluflexpack, which are looking to further crystallize their growth ambitions. “Ahead of our listing, we identified several markets we believed were very attractive and that were experiencing rapid growth. We also had an interest in a number of companies where we thought there could be synergies between them and our own business,” says Lukas Kothbauer, CFO at Aluflexpack.
The IPO has given Aluflexpack more visibility (i.e. through greater media coverage), helping the firm raise its profile among investors. At the same time, Kothbauer highlights that listed companies are subject to heightened reporting requirements, providing investors with a degree of comfort and security – further helping Aluflexpack raise money via the public markets.
As a result of its listing, Aluflexpack has been able to obtain the necessary funding to finance its ambitious growth strategy.
Since 2018, Aluflexpack has almost doubled in size and acquired a number of European businesses within the packaging industry. Additionally, the company invested €70 million on expanding and modernizing its production plant in Drniš, Croatia.
While IPOs can be complex and costly undertakings (i.e. fees from underwriters, lawyers, listing and maintenance fees, added regulatory and investor reporting etc.) , the benefits are clear-cut.