(Reuters) - German medical vials manufacturer Schott Pharma on Wednesday priced its initial public offering (IPO) at 27 euros per share, giving it a potential valuation of up to 4.1 billion euros ($4.31 billion).
The company, which is set to debut on the Frankfurt stock exchange on Thursday morning, will see the parent company Schott AG offering a 23% stake in the IPO of its medical vials division while retaining the remaining 77% stake as a long-term shareholder.
Cornerstone investor Qatar Holding LLC, a subsidiary of sovereign wealth fund Qatar Investment Authority, has agreed to buy up to 200 million euros worth of shares sold in the offering, which would account for nearly 4.9% holding in Schott Pharma.
"There is strong demand not only for our leading drug containment solutions and delivery systems but also from investors worldwide, proving the great prospects of our company," Schott Pharma CEO Andreas Reisse said.
The Mainz-headquartered company focuses on the market for injectable drugs, which is estimated to grow at 9% annually until 2026, according to the company.
Earlier this month, the company said it was aiming for a valuation of 4.3 billion euros.
Schott Pharma's flotation comes as the IPO market is showing signs of life after a lengthy drought, with several companies going public in Europe and the United States after the summer lull.
($1 = 0.9522 euros)