Vaccine Vial Maker Stevanato Valued at More Than $5 Billion in Lukewarm NYSE Debut

(Reuters) -Italys Stevanato Group SpA made a lukewarm debut on the New York Stock Exchange as shares fell, giving the world’s second-largest glass bottle maker a $5 billion valuation.

Stevanatos shares fell more than 20% to open Friday at $16.65. The company had its IPO price of 32 million shares, down from 40 million shares previously, at the lower end of its target range of $21 to $24 per share.

The maker of COVID-19 vaccine vials and other health products raised about $672 million from its IPO on Thursday.

IPO is the best way to further fund the company… we will invest most of the proceeds from the IPO in the new greenfield plants, one in Indiana and one in China, said Franco Stevanato, executive chairman of the company . plate.

The company has seen demand for its products and service rise as a result of the COVID-19 pandemic. It supplies vials to approximately 90% of currently marketed COVID-19 vaccine programs, according to Stevanatos estimates.

The majority of the company’s total revenue comes from the biopharmaceutical and diagnostic solutions segment that makes, among other things, vials, cartridges and drug delivery systems, according to a recent filing by the company.

The medical packaging company, originally founded as a specialty glass manufacturer by billionaire Sergio Stevanato in 1949, has more than 700 customers, including 41 of the top 50 pharmaceutical companies, the filing shows.

Morgan Stanley, BofA Securities and Jefferies were the leading underwriters for the offering.