VC-backed NFon lowers IPO price range

This reflects an expected market capitalisation of €165-185m, down from €200-239m, and a free float of up to 41.5%, down from 68.7%. The targeted capital increase of €50m remains unchanged.

NFon originally set its IPO price range on 24 April and said the adjustment was the result of capital market volatility. The first day of trading has also been postponed by two days and is now scheduled for 11 May.

As a result of the lower price range, Milestone Venture Capital has announced its intention to buy shares in the IPO in order to secure a stake of 30.1% post-IPO.

More than 99% of the company's share capital is currently held by German VC firms. Milestone Venture Capital is the largest shareholder with 35.77%, followed by Earlybird Venture Capital with 34.48%, MIG with 13.29% across two different vehicles, Bayern Private Equity with 6.4%, High-Tech Gründerfonds with 4.88% and BayBG with 4.84%. Software provider ASC Technologies holds the remaining 0.34%.

The proceeds from the listing will be used to finance further growth. NFon has earmarked €15-20m for regional expansion in Europe with a focus on France, Italy, Belgium, Luxembourg and the Netherlands. An additional €10-15m will be used for research and development, €10-15m for marketing, and €5-10m for pursuing M&A opportunities.

Founded in 2007, NFon is a cloud-based telephone system for companies including banks, insurance providers, transport providers and the food and beverage industry.

The company is headquartered in Munich and has additional offices in Mainz and 13 other European countries. It employs 150 people and generated revenues of €35.7m in 2017 with an adjusted EBITDA margin of 0.5%. The company has recorded a compound annual revenue growth rate of 30% between 2015 and 2017.

Berenberg is the sole global coordinator and is also mandated as joint bookrunner with Baader Bank and Oddo BHF.

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• Topics
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• High-Tech Gründerfonds