Brainlab AG is to be valued at €1.7 billion in an initial public offering of shares before its debut on the Frankfurt Stock Exchange. Before the end of subscriptions for shares, the board of the company specializing in creating medical software and equipment supporting surgical treatment is to meet with investors from New York. The first day of trading is scheduled for July 3.
Brainlab AG is a pioneer and one of the global leaders in the development, production and implementation of advanced medical software and equipment supporting surgical treatment and radiotherapy. It provides navigation systems during brain, spine, orthopedic and maxillofacial surgery.
It also develops platforms for managing data in the operating room, integrating images, documentation and real-time communication that streamlines the work of the surgical team. Founded in 1989, the company employs more than 2,200 people and operates in more than 5,600 hospitals in 116 countries.
As reported in Monday's announcement, the price of Brainlab shares during the initial public offering is to be set at EUR 80. As stated in the statement by the issue organizer, the reported demand for shares was many times greater than the number of securities offered, but the set price is still the lower limit of the offered range.
Brainlab offer details
Recall that investors were offered up to 2 million new shares and up to 3.2 million shares sold by the previous owners (the company's founder Stefan Vilsmeier, his extended family and the Munich-based financial investor EMH Partners). The official price range for Brainlab shares was set at 80–100 euros per share, valuing the company at 1.67–2.09 billion euros.
At a price of 80 euros per share of the new issue, the company will receive 160 million euros gross, which the company plans to use to enter other segments such as orthopedics, sports medicine or cardiology interventions. Part of the capital will be allocated to the expansion and training of sales teams to increase the share of foreign markets. The company also communicated support for research and development (R&D) and improvement of the financial structure.
Record results before debut
Before the debut, the company showed very good financial results. In the first half of the 2024/25 financial year, revenues reached EUR 239 million, which means an increase of 14% compared to the first half of 2023/24. It was the most successful first half of the year in the company's history. EBITDA amounted to EUR 54 million, with a margin of 22.4%. The price of EUR 80 means a valuation, as a P/E multiple of around 20x based on current earnings.
In terms of the geographical distribution of revenue based on FY2023/24 data, 41% was generated in the US, 46% in Europe and 13% in Asia (including China). 91.1% of the Group’s revenue came from the Spine and Cranial Surgery segments (67.4%) and Radiosurgery (23.7%). Over the last three full fiscal years, Brainlab achieved a compound annual growth rate (CAGR) of 13.6% in revenue.
An interesting offer in a demanding market
As you can see, Brainlab's business model is based on high-margin software and hardware for surgery and radiotherapy, with a strong position in neurosurgery and orthopedics and plans to expand into new medtech segments. The company records dynamic revenue growth, high margins with a fairly geographically diversified customer portfolio. Combined with innovative software and hardware solutions, it makes it one of the more interesting debutants in the European medical technology sector.
Brainlab, however, faces competition from established giants like Medtronic and Stryker, which are also investing in software-based solutions. Regulatory hurdles—such as approvals for new clinical applications—could delay growth, notes ainvest.
According to Reuters, the board is still to present the company to American investors in New York on Monday. The subscription period for the shares ends on Tuesday, and the debut is scheduled for Thursday, July 3. Berenberg and Deutsche Bank are responsible for organizing the public offering. The coordinators of the book of demand are Commerzbank, Jefferies and UniCredit.
A week ago, the German stock exchange canceled the offer of the automotive company Autodoc. The successful debut of Brainlab may become a reference point for valuations of other technology companies, including those planning a debut, especially those related to the medical industry.
MK
