(Bloomberg) — Schott AG is exploring options for its business making test tubes and glass packaging for the pharmaceuticals industry, including a possible initial public offering, according to people familiar with the matter.
The specialist German glazing company is speaking with potential advisers about a listing of its pharma unit next year, the people said, asking not to be identified discussing confidential information. An IPO could value the business at about $4 billion, the people said.
Schott would have to carve out the unit before any listing, one of the people said. It may also explore other options for its pharma arm, including a possible sale, according to the people. Deliberations are ongoing and no final decisions have been taken, they said.
“Our pharmaceutical business is and will remain a core part of our growth strategy,” a representative for Schott said in an email. “Of course, we are constantly reviewing strategy and financing options.”
Schott makes glazing products used in everything from building exteriors to lasers. Its pharma division makes glass tubes for testing, containers for long term drug storage and components for bioprocessing. The company is owned by the Carl Zeiss Foundation, which also controls the lens maker and optoelectronics specialist Carl Zeiss AG.
IPOs worldwide have plummeted in the first quarter after a record showing in 2021, as volatility stoked by the war in Ukraine and soaring inflation sets investors on edge and scuppers deals. To be sure, bankers are betting on a recovery in the months ahead, fueled in part by a full pipeline of large listing candidates readying to tap public investors, and the green shoots of a stock market rebound.
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