In Switzerland, an SME decided to go public through a rare SPAC transaction. Despite the challenging IPO environment and declining interest in Spac transactions, the R&S Group took the risk and went public on the Swiss stock exchange. This move allowed the company 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 its main owner, CGS, who remains the largest shareholder even after the IPO.
The R&S Group did not follow the traditional route to go public, instead opting for a Spac transaction. This unique approach is notable given the current market conditions and declining interest in Spac transactions. However, this move may have been influenced by the ease, cost-effectiveness, and efficiency of the process compared to a traditional IPO. The company’s decision to go public in this manner may have also been driven by its desire to gain more visibility and implement its growth plans through the listing.
Despite its small size and competition against larger global corporations, the R&S Group has successfully completed its public offering through the Spac transaction. The success of this approach and the company’s future performance on the stock market will depend on various factors, including its ability to attract and retain investors and compete effectively in its industry. Overall, this bold move by R&S Group marks Switzerland’s first real IPO with capital raising this year in challenging market conditions.