Sunrise CEO during the re-listing of the company on the SIX” class=”wp-image-27473″ srcset=”https://muula.ch/wp-content/uploads/2024/11/SIX_Sunrise_Wiederkotierung_sunn-01-e1731702735361-1024×515.jpg 1024w, https://muula.ch/wp-content/uploads/2024/11/SIX_Sunrise_Wiederkotierung_sunn-01-e1731702735361-300×151.jpg 300w, https://muula.ch/wp-content/uploads/2024/11/SIX_Sunrise_Wiederkotierung_sunn-01-e1731702735361-768×387.jpg 768w, https://muula.ch/wp-content/uploads/2024/11/SIX_Sunrise_Wiederkotierung_sunn-01-e1731702735361.jpg 1526w” sizes=”(max-width: 1024px) 100vw, 1024px”/>Sunrise boss André Krause rang the traditional stock exchange bell at the stock exchange debut on the SIX. (Image: PD)
The telecommunications company Sunrise is listed again on the Swiss Stock Exchange SIX. Analogous to Galderma’s IPO, high losses are emerging.
The telecommunications company Sunrise has successfully returned to the Swiss SIX stock exchange.
This Friday, the titles under the ticker symbol “SUNN” were traded at the opening of trading in Zurich for 44.75 francs, like Sunrise and die SIX communicated.
High market capitalization
The telecommunications group was already listed in Switzerland from 2015 to 2021. After its acquisition by the cable network giant Liberty Global for around 6.8 billion francs, Sunrise disappeared from the trading floor.
With a market capitalization of 3.2 billion francs, Sunrise made the third-largest IPO in the world this year through the listing of Class A shares.
The IPOs of Lineage in the USA and the Midea Group in China were larger.
But the Swiss IPO of skin care specialist Galderma in March, for example, only raised around 2.3 billion francs.
Hundreds of millions in the minus
But a commonality can be found if investors read the shares’ sales prospectuses carefully.
So reported muula.chthat Galderma basically only made losses in the years before its stock market debut.
The situation is similar at Sunrise. Except for a year fell according to the published annual accounts only losses.
Sunrise is making high losses. (Screenshot: muula.ch)
In 2023, Sunrise generated a loss of 312 million francs.
In the first half of 2024, the loss was already around 201 million francs.
Swisscom is preparing
Sunrise will hardly be able to pass as a growth story. In recent years, sales have practically stagnated at around 3 billion francs, as can also be seen from the annual financial statements.
At an investor conference, Sunrise management expressed confidence that it would be able to attract many new customers with special offers.
The top dog on the Swiss market, the state-owned Swisscom, doesn’t sleep either and is increasing premiums for its customers, as is the case muula.ch reported.
This means that customers who are susceptible to switching are more likely to stay with Swisscom.
Debt as a business
Financial experts criticized the IPO because Sunrise had high levels of debt.
But this is reminiscent of the typical private equity business model, which buys and restructures companies and then brings them onto the stock exchanges with a comparatively large amount of debt, but at a profit.
Sunrise share price (screenshot: muula.ch)
The share price did not take a clear direction this Friday.
The debt may be reduced earlier than planned, Sunrise said before its stock market debut.
Company avoids critical questions
However, if you want to know more about Sunrise, it is quite difficult. For example, registering for media information via the website has not been working for weeks.
Journalists were also not allowed to ask questions at Liberty Global’s information event about the IPO.
With the company being so cautious, investors may also want to exercise caution when making any investments.
15.11.2024/kut.
