Ad hoc announcement pursuant to Art. 53 LR
First listing of a Swiss company on the Shanghai tech market
Kloten/Stein am Rhein, 23 November 2020 - The Phoenix Mecano Group is planning a (partial) listing on the Shanghai Stock Exchange STAR Market, becoming the first Swiss company to make this move. On 1 January 2021, a separate business area will be created and spun off under the name DewertOkin Technology Group, with a view to a subsequent launch on the world's newest tech market. Phoenix Mecano intends to use the proceeds from the listing to raise fresh capital in order to expand its share of the fast-growing market for electrically adjustable furniture.
The planned partial listing on the Shanghai STAR Market is a major milestone for Phoenix Mecano. "We deliberately chose Shanghai because the highly dynamic Chinese economy offers great potential for expanding our activities. A number of competitors have recently launched on the Shanghai Stock Exchange with great success or are planning to do so in the near future. DewertOkin Technology Group is already a global leader in parts of its target markets for smart, electrically adjustable furniture and is now ready to systematically capitalise on the available growth windows. A listing on the STAR Market will offer a lot of flexibility in the heavily regulated Chinese capital market and bolster our status as a technology company," says Benedikt A. Goldkamp, Executive Chairman of Phoenix Mecano's Board of Directors.
Phoenix Mecano has been present in China since 1996 and has several well-established production sites in the country. The DewertOkin Technology Group business area develops and produces high-performance system solutions for ergonomic furniture for the home comfort sector, hospitals, nursing homes and offices. These include smart control systems, software, sensors, drive technology and kinematic fittings. The long-term growth of its target markets has accelerated again in the last three years and is now well into double digits. Over the next five years, Phoenix Mecano plans to invest around EUR 100 million in Jiaxing (greater Shanghai area) to expand its development and production capacity. This major expansion in China cannot be financed from existing cash flow without affecting the development of the Group's other business areas, which is why Phoenix Mecano is looking to launch on the Shanghai STAR Market in 2022.
Phoenix Mecano's CEO Rochus Kobler says: "A real technology cluster is forming in that region, creating optimum conditions for growth. We're highly confident that we will benefit from this dynamic environment and that we can significantly strengthen our position as a provider of digital and integrated system solutions."
About Phoenix Mecano