BERLIN (dpa-AFX) - Cherry AG, a German manufacturer of high-end switches for mechanical keyboards and of computer input devices, announced Tuesday that it has set price range of its initial public offering or IPO at 30 euros to 38 euros per share.
Based on the price range, Cherry's post-IPO market capitalization is expected to be in a range between 729 million euros and 923 million euros.
The IPO is expected to consist of four components, including 4.3 million new ordinary bearer shares to be issued from a capital increase of the Company. Furthermore, 5 million existing ordinary bearer shares from the holdings of Cherry TopCo will be offered in a base deal.
In addition, Cherry TopCo reserves the right to offer up to 2 million additional existing ordinary bearer shares from its holdings on the date of pricing subject to market demand. Moreover, up to 1.695 million existing ordinary bearer shares from the Selling Shareholder can be placed to cover potential over-allotments.
Under the assumption that all offered shares will be placed, total proceeds of the IPO are expected to be between 390 million euros and 494 million euros, of which around 140 million euros are intended to be used to fuel organic growth, drive inorganic growth through selective acquisitions, and repay certain outstanding debt in connection with a refinancing of existing debt.
The offer period, during which purchase orders can be submitted will start June 16, and is expected to end on June 23.
The first day of trading of the Company's shares and delivery of placed shares are planned for June 29. The listing of its shares will be on the regulated market of the Frankfurt Stock Exchange.
Rolf Unterberger, Cherry's CEO, said, 'We are confident of delivering our stated goal of organic revenue growth between 30-40% in 2021 and maintaining strong double-digit mid-term growth rates. In addition, beginning in 2022, we strive to continue to improve our margins.'
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