In Switzerland, an SME decided to go public through a rare SPAC transaction. Although it is unclear whether the R&S Group or its investors will benefit the most from this move, the company successfully completed its public offering with shares closing almost 13 percent higher on its debut. This marks the Swiss stock exchange’s first real IPO with capital raising this year.
The R&S Group did not follow the traditional route to go public, opting instead for a Spac transaction. Spac stands for Special Purpose Acquisition Company, where an already listed entity, in this case VT5, acquires a company like the R&S Group, allowing it to enter the stock exchange through that vehicle. This unique approach is notable given the current market conditions and declining interest in Spac transactions.
Despite the challenging IPO landscape in Switzerland, the R&S Group successfully completed its public offering through a Spac transaction. The company’s decision to go public in this manner may have been influenced by the ease, cost-effectiveness, and efficiency of the process compared to a traditional IPO. This move allowed the R&S Group to avoid certain regulatory requirements and present itself as a more attractive investment opportunity.
The funds raised through the IPO will primarily be used to pay off the main owner, CGS, who remains the largest shareholder even after the IPO. While the company aims to gain more visibility and implement its growth plans through listing on the stock market, questions remain about its long-term performance on this platform. The R&S Group will need to navigate its small size and competition against larger global corporations to maintain its position in