In Switzerland, a small and medium-sized enterprise (SME) has taken a bold step by using a rare Special Purpose Acquisition Company (SPAC) transaction to go public. This decision has sparked interest as it remains unclear whether the R&S Group or its investors will benefit the most from this move. Despite a challenging environment for initial public offerings (IPOs), the industrial company R&S Group from Sissach (BL) decided to venture onto the Swiss stock exchange. The shares of this electrical engineering provider had a strong start, ending trading with a gain of almost 13 percent. 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, deciding instead to offer its shares through a SPAC transaction. A SPAC, or Special Purpose Acquisition Company, is a listed entity that acquires another company and allows it to enter the stock exchange through the already listed SPAC. This unconventional move has raised eyebrows given the current market conditions for IPOs. While the enthusiasm for SPAC transactions has waned in recent times, the R&S Group’s decision to go public through this route is a significant development in the Swiss market. This move comes at a time when the IPO landscape has seen a decline in activity over the past two years due to uncertain market conditions. Despite these challenges, the R&S Group seized the opportunity to become a public company.
VT5, the SPAC that facilitated
