Montana shares surge nearly 18% on Swiss stock market debut

The aircraft components maker saw its shares rise to $33.16, well above a list price of $28.35

Shares in aircraft components maker Montana Aerospace surged nearly 18% on its debut on the Swiss bourse on Wednesday, giving it a higher-than-expected market capitalisation of nearly 1.4 billion Swiss francs ($1.5 billion).

The Austrian-Swiss company, whose customers include Boeing and Airbus, saw its shares rise to 30.60 Swiss francs ($33.16) in early trading, well above a list price of 25.65 Swiss francs ($28.35).

The rise added nearly 200 million francs to the company's estimated pre-float value of 1.2 billion francs.

The initial public offering (IPO) raised around 440 million francs which Montana said it would use to fund acquisitions and organic growth in the aero industry that has been hard hit by the pandemic. It issued 17.1 million new shares.

Assuming the full exercise of an over-allotment option that could boost proceeds to a total of 506 million Swiss francs ($559.22 million), the company will have a free float of 41.8%.

Montana Tech Components, currently the sole owner, will remain the majority shareholder with a stake of 58.2% following the listing on the SIX Swiss Exchange.

Montana Tech Components, owned by Austrian billionaire Michael Tojner, will receive 66 million francs from the selling an extra 2.6 million shares it holds if the over-allotment option is used.

Montana Aerospace wants to use 60% of the proceeds for acquisitions in the highly fragmented aviation sector which has been battered by the pandemic and the Boeing 737 MAX safety crisis.

The remaining 40% will fund organic growth, as customers want to deal with less complicated supply chains in future.

With the listing on SIX, we return to our Swiss roots and strengthen the financial resources to successfully continue our strategic course, said Chief Executive Markus Nolte.