Italy's Stevanato Group S.p.A. made a tepid debut on the New York Stock Exchange as its shares slid, giving the world's second largest glass vial maker a valuation of $5 billion.
Stevanato's shares fell more than 20% to open at $16.65 on Friday. The company had priced its initial public offering (IPO) of 32 million shares, down from 40 million shares earlier, at the lower end of its target range of $21 to $24 per share.
The maker of COVID-19 vaccines vials and other healthcare products raised about $672 million in its IPO on Thursday.
"IPO is the best way to further finance the business...most of the proceeds of the IPO, we are going to invest in the new greenfield plants, one in Indiana, and one in China," said Franco Stevanato, executive chairman of the company's board.
The company saw demand for its products and service go up due to the COVID-19 pandemic. It provides vials to about 90% of currently marketed COVID-19 vaccine programs, according to Stevanato's estimates.
Majority of the company's total revenue comes from its biopharmaceutical and diagnostic solutions segment that makes vials, cartridges and drug delivery systems, among others, according to a recent filing by the company.
The medical packaging company, originally founded as specialty glass manufacturer by billionaire Sergio Stevanato in 1949, has more than 700 customers, including 41 of the top 50 pharmaceuticals companies, the filing showed.
Morgan Stanley, BofA Securities and Jefferies were the lead underwriters for the offering.
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