Chronext looks set to be valued at up to CHF 702 million as it gets IPO ready.
The price range will be set at CHF 16 to CHF 21 per share, implying an offer size of approximately CHF 152 to CHF 200 million.
The all-primary Offering comprises 9,524,000 new shares, with an over-allotment option of up to 1,428,600 shares, or 15% of total shares sold in the IPO.
This means the offering will reach CHF 175 million to CHF 230 million if the over-allotment option is exercised in full.
Assuming full placement of the offered shares and full exercise of the over-allotment option, the market capitalization will be CHF 520-680 million with a free float of approximately 32.5%.
The market capitalisation will further increase to CHF 540-702 million upon conversion of a convertible loan at IPO.
Making predictions on progress, Chronext says it expects to receive gross proceeds of approximately CHF 152 million to CHF 200 million, confirming that these proceeds will predominantly be used to drive organic growth, specifically brand building.
In this respect, Chronext plans to deploy the net proceeds of the offering to increase brand awareness in core markets and establish a brand presence in new geographies.
The net proceeds are also expected to be used to expand the company’s lounge network and to invest further in CHRONEXT’s technology, in particular in respect of increasing integration with retailers and brands, continuing development of a mobile application, and building the technology required to introduce additional products and services as well as for net working capital expansion and debt repayment.
The remaining net proceeds of the offering are intended to be used to fund inorganic growth, in particular in core geographies as well as the United States and Asia.
The offer period commences today, 28 September, and is expected to end on or around 6 October while the listing and the first day of trading are expected to take place on or around October 8 on the SIX Swiss Exchange AG.
Commenting, Philipp Man, CEO and Co-Founder of Chronext, said: “CHRONEXT’s planned IPO is an important strategic milestone for the company since we began our journey in 2013. Listing in Zurich will give CHRONEXT the financial flexibility to conquer growth in the luxury watch sector and establish a strong foundation from which to seek further organic and inorganic expansion.”
Adding: “I am delighted that investor interest in our offering has been so strong, and I am now looking forward to taking this next step as a listed company.”
CHRONEXT’s trading symbol will be CXT and its ISIN is CH1127278153.