The Aluflexpack IPO: A Steppingstone for Growth and Innovation

Our journey began in 2012, when Montana Tech Components, an industrial conglomerate headquartered in Reinach, Switzerland, acquired the Aluflexpack Group. This was followed by six years of rapid expansion for Aluflexpack, until the company’s aspirations eventually outgrew the financial capabilities of its sole shareholder, Montana Tech Components. “At the time, we identified numerous markets that were attractive and undergoing rapid structural growth. We also had our sights set on a pool of companies that we could potentially acquire to create synergies,” says Lukas Kothbauer, CFO of Aluflexpack. The company then discussed various possibilities for turning its growth ambitions into reality. Going public was thought to be the most promising solution. 

Although Aluflexpack has its headquarters in Switzerland, the company’s management is based in Vienna and its production plants are spread all over Europe. “We don’t define ourselves as a Swiss or an Austrian company but, rather, as a European one,” explains Kothbauer. Thus, when deciding which stock exchange to list on, Aluflexpack asked itself three questions in particular:

• In which countries does Aluflexpack have a manufacturing footprint?
• In which countries does it have the best access to existing customers as well as potential customers?
• Which platform offers the best visibility and liquidity?

Due to its production presence in Einsiedeln, the strong customer interest in Switzerland and the reliable platform of SIX Swiss Exchange, Aluflexpack opted to go public in Switzerland.

“SIX Swiss Exchange is seen as a reliable and professional partner. The stock exchange is very important in the European context. And we knew that a listing in Switzerland would give us access to a large circle of international investors, more so than other exchanges could have done,” says Kothbauer. It was the correct decision, he believes: “Looking back, I am convinced we made the right choice by listing our company in Switzerland. This has also been confirmed by the feedback from our international investors.”

The preparations for the IPO started in 2018. But not everything went to plan. Halfway through the process, the Aluflexpack production facility in La Ferté-Bernard, France, suddenly went up in flames. “It was a very stressful period,” remembers Kothbauer. “Of course, we eventually had to break the news about the fire, which caused concern among many investors. But it all worked out in the end. The incident didn’t harm the IPO.”

The company’s interactions with SIX and the regulatory body SIX Exchange Regulation (SER) also went smoothly. “It was all very professional. When working with them, we received the right guidance and advice throughout. Above all, we appreciated the pragmatism shown by SIX Swiss Exchange. Halfway through the preparations for the IPO, we also acquired a company in Turkey – and were given the necessary support with this too,” says Kothbauer.

The IPO process was an intense period for Kothbauer personally. Today, he would take things a little easier. “If we had to do it all again, I would try not to get as stressed about it. An IPO is something unique, something very special for a company. But it’s not a matter of life and death. It’s OK to fail,” he says.

Aluflexpack went public on June 28, 2019. At the time, the share capital comprised 17,300,000 registered shares with a nominal value of 1.00 Swiss franc each. As part of the IPO, 7,300,000 newly issued registered shares were offered. Montana Tech Components, which had been the sole shareholder up until then, remained the majority shareholder. The closing price on the first day of trading was 22.5 francs per share, which meant a placement volume of around 153 million francs. 

Aluflexpack invested the capital from the IPO into its growth strategy. It acquired several European companies in the packaging industry. It also invested 70 million euros into expanding and upgrading the production plant in Drniš, Croatia, which boosted its production capacity considerably. “We are still entrepreneurial and customer-focused,” says Lukas Kothbauer. “But we are no longer the same player in the market. Our company has nearly doubled in size compared to 2018.”

As a listed company, Aluflexpack is now perceived differently than it was just five years ago. In terms of visibility in the market, CFO Kothbauer highlights four aspects in particular that have changed with the IPO:

• Better access to potential partners
• More attractive as an employer
• More media interest
• Greater brand awareness

The increased visibility since the listing is opening up more opportunities for Aluflexpack. Because listed companies are subject to stricter reporting regulations, this makes them more credible and a safer bet in the eyes of investors. Our reporting activities and the greater media coverage enable the company to position itself and communicate its vision externally.

But heightened visibility and investor expectations also call for consistent communications with the outside world, be it on the corporate website, on social media or in press releases. “We operate an Investor Relations department and have to regularly report to the public, including on sustainability issues. We joined the Science Based Target Initiative in 2023 and have committed to reducing emissions to net zero by 2050,” says Kothbauer.

According to the CFO, the changes associated with a company going public may be challenging, but they are also highly rewarding: “The effects of the IPO led to us being perceived as a more professional company by suppliers, customers, employees and partners. We are constantly refining our strategy to make it accessible to a broader target group.”

In 2021, the company's achievements were even rewarded with an award. At the European Small and Mid-Cap Awards, Aluflexpack won the "Star of 2021" award. 

Today, Aluflexpack stands as a testament to strategic foresight and adaptability in the ever-evolving packaging industry. The IPO was not just a financial milestone – it was a catalyst for growth, innovation and a stronger market presence. After expanding its operations, doubling in size and achieving greater visibility, Aluflexpack continues to navigate the market with agility and foresight while strengthening its position as a leading European packaging company.