After several years of subdued activity, the IPO market in Switzerland underwent something of a resurgence in 2024. This revival was underpinned by key transactions, a shift in investor sentiment, and broader trends in European capital markets, all of which have contributed to renewed confidence in the viability of Swiss public listings. Looking toward 2025 and beyond, while certain fundamental questions remain about market depth, investor appetite and macroeconomic stability, there are reasons to have an optimistic outlook regarding the future of the Swiss IPO landscape.
1) The Revival of Swiss IPOs
In recent years, the Swiss IPO market has suffered heavily from a variety of macroeconomic factors, including the outbreak of COVID-19, the war in Ukraine, and sustained market volatility both in Europe and globally. As a result, the number and size of traditional IPOs on SIX Swiss Exchange between 2020 and 2023 decreased dramatically compared to historic levels, resulting in a general consensus that the market was essentially closed to newcomers. The only exception to this was the short-lived boom in listings of GDRs, or global depositary receipts, by Chinese issuers on SIX Swiss Exchange pursuant to the „China-Switzerland Stock Connect“ program introduced in June 2022, which has since died down following new, limiting regulations by the Chinese Securities Regulatory Commission in 2023.
Encouragingly, in 2024, some tentative green shoots began to emerge, signalling a potential revival of the Swiss IPO market. The key trigger for this was the successful public listing of Galderma. In March 2024, the dermatology firm listed on SIX Swiss Exchange, raising CHF 2.3 billion and achieving an initial market capitalization of approximately CHF 14.5 billion. As the largest Swiss IPO since 2017 and the largest IPO globally in the first quarter of 2024, it was widely regarded as the event that could herald the reopening of the Swiss market after an extended period of dormancy.
Adding further cause for celebration, the transaction was well received by investors and performed strongly in the aftermarket. With an IPO price of CHF 53 per share, an opening price of CHF 61 per share on the first day of trading, and a surge of 21% by the end of that first day, concerns may have initially arisen about an over-enthusiastic aftermarket. However, in the intervening period, the price of the shares has continued to climb steadily, exceeding CHF 100 per share by the end of 2024. The market also successfully absorbed two substantial sell-downs by major shareholders in September and November 2024, further evidencing the strength and depth of investor appetite for the Swiss company‘s shares. Market observers viewed both the IPO itself and the strong aftermarket performance as an affirmation of the strength of Switzerland’s public markets.
The success of Galderma’s listing appears to have acted as a catalyst for a number of Swiss firms to begin preparing for IPOs, suggesting that confidence in public capital markets is improving. Investment banks have reported increased preparatory activity, as companies from a range of industries explore the possibility of a listing in Switzerland. Given the lengthy period required to prepare for an IPO, however, it may take several months, or even until the beginning of 2026, before the fruits of these initiatives are seen in the form of new entrants on SIX Swiss Exchange.
2) A Broader Context
Switzerland’s nascent IPO recovery must be understood within the broader European capital market landscape. Across the continent, public listings have increased in frequency, with proceeds from European IPOs reportedly doubling in 2024 compared to 2023. Companies in key markets such as Germany, France, and the United Kingdom have contributed to this resurgence, benefiting from more favourable economic conditions and a measured reduction in market volatility.
Despite this increased activity in Europe, however, the aftermarket performance of a number of landmark European IPOs failed to achieve the same successes as the Galderma IPO. For example, the shares of Douglas AG, listed on the Frankfurt Stock Exchange in March 2024, and Puig Brands SA, listed on the Spanish Stock Exchanges in May 2024, have both consistently and stubbornly remained below the IPO price, triggering disappointment among market spectators.
While the re-emergence of Swiss IPOs has been a defining feature of 2024, an equally important development has been the prevalence of corporate spin-offs and other restructuring efforts aimed at unlocking shareholder value, as evidenced by Liberty‘s spin-off of Sunrise Communications Ltd in November 2024. Given the lower risk profile that comes from having a ready-made shareholder base for the spun-off shares, such transactions are often less dependent on favourable IPO conditions and have proven to be an effective means for large corporations to optimize their business structures. Among the notable forthcoming transactions is Holcim’s proposed spin-off of its North American operations. The building materials conglomerate has indicated plans for a listing in the United States, expected to take place in mid-2025. This move aligns with a growing trend among large corporations seeking to unlock shareholder value through strategic corporate restructuring rather than through traditional IPOs.
3) Key Questions Moving Forward
Despite the positive momentum observed in 2024, certain critical questions remain regarding the future trajectory of the Swiss IPO market. While the success of the Galderma IPO indicates an appetite for large-cap transactions, it remains to be seen how well smaller players – which have historically made up a significant number of Switzerland‘s IPO candidates – might fare. The true test of the market’s robustness will therefore likely be its ability to support mid-sized and smaller listings in the coming months.
The recent IPO of Bioversys, a Swiss biotech firm, will serve as an important benchmark in this regard. With a deal size of EUR 80 million and an initial market capitalization of around CHF 215 million, Bioversys represents a more modest offering than Galderma, and its performance will provide insights into investor willingness to engage with smaller, high-growth companies.
The macroeconomic environment remains a crucial factor influencing IPO candidates‘ willingness to proceed to market. While inflationary pressures have eased to some extent, and interest rates have stabilized, significant uncertainties exist, particularly in respect of geopolitical tensions and the potential introduction of U.S. tariffs on European products. IPO candidates must therefore demonstrate not only strong financial fundamentals but also resilience in the face of potential economic headwinds, with investors likely placing a premium on companies that enjoy leadership positions in niche, high-growth industries.
4) Looking Ahead: A Cautiously Optimistic Outlook
The resurgence of the Swiss IPO market in 2024 is an encouraging development, and the outlook for 2025 remains largely positive. The presence of a healthy pipeline of potential listings suggests that the recent momentum may continue, particularly if broader European market conditions remain supportive.
However, this recovery must be approached with a measured perspective. The ability of the Swiss IPO market to sustain this momentum will depend on multiple factors, including market depth, macroeconomic stability, and investor risk appetite. Additionally, regulatory and structural considerations will play a role in determining whether Switzerland remains an attractive listing destination in the face of competition from other global financial hubs.
In sum, while the re-emergence of IPO activity in Switzerland is a welcome development, long-term sustainability will require continued adaptation, prudent corporate governance, and a stable macroeconomic environment. Market participants will do well to remain vigilant, ensuring that the enthusiasm surrounding recent transactions is supported by enduring financial and economic fundamentals.
Deirdre Ní Annracháin (deirdre.niannrachain@nkf.ch)