(Bloomberg) — SMG Swiss Marketplace Group’s shares gained in its Switzerland debut, after investors placed orders for at least 10 times more shares than were for sale in Europe’s largest initial public offering so far this year.
Shares of the General Atlantic-backed company traded as high as 50 Swiss francs ($62.89) apiece on Friday, 8.7% higher than its offering price of 46 Swiss francs each, before paring some of the gains.
The early lift in SMG’s shares shows investors’ appetite for new issuances in Europe at a time when the region’s equity capital markets attempt to come back from a weak start to the year. The positive debut can help shore up confidence at a key time, as alarm company Verisure Plc readies a €3.1 billion ($3.7 billion) IPO that’s set to be Europe’s largest first-time share sale in three years.
“SMG provides a welcome signal that quality listings can succeed, even in a muted environment. But it’s not a green light for everyone — the bar is high, and investors are selective,” said John Plassard, head of investment strategy at Cité Gestion Private Bank. “The company dominates the Swiss classifieds space, a relatively defensive, cash-generative model that appeals in today’s uncertain macro backdrop.”
There were signs of strong demand for the offering. Excluding cornerstone investors, demand for the shares exceeded the offering of about 1 billion Swiss francs, including the overallotment option, by a multiple in the high-teens, according to a person familiar with the matter. It priced at the top end of the marketed range, with more than 300 orders from investors across the world, the person said.
Long-only shareholders were allocated most of the deal, said the person, who asked not to be identified because the information is private. A representative for SMG pointed to remarks from Chief Executive Officer Christoph Tonini that “this IPO allows the broader public to participate in what we believe is a strong long-term opportunity.”
The IPO raised about 903 million Swiss francs from the sale of 19.6 million shares by two investors, Mobiliar and Ringier AG. It valued the Zurich-based online marketplace company at roughly 4.5 billion francs. The stock traded at 47.95 francs per share, as of 1 p.m. in Zurich.
“We looked at which investors were genuinely interested in understanding the business,” SMG’s CEO said at the exchange on Friday morning. “You simply want to have long-only investors on board because they are important for further sell-downs, without putting pressure on the stock.”
SMG operates marketplaces for real estate, cars, finance and insurance in Switzerland, including brands such as Homegate, AutoScout24 and Ricardo. The company was formed in 2021 when TX Group AG, Ringier, Mobiliar and General Atlantic launched a joint venture to combine multiple platforms.
The company generated revenue of 290.9 million francs last year, and in August reaffirmed its 2025 target for 13% to 15% growth. Its IPO marks Switzerland’s largest since Galderma Group AG’s debut in March 2024.
Lukas Muehlbauer, a research analyst at index provider IPOX Schuster LLC, said SMG’s gains reflect the scarcity of large deals in Europe. “Investors now want to see genuine growth stories,” he said. “Strong aftermarket performance builds confidence — especially when companies are backed by institutions rather than simply exiting owners.”
Goldman Sachs Group Inc., JPMorgan Chase & Co. and UBS Group AG led the offering.
–With assistance from Phil Serafino.
(Updates with minor changes throughout.)
©2025 Bloomberg L.P.