CHRONEXT AG: sets price range at CHF 16 to CHF 21 per share

EQS Group-News: CHRONEXT AG / Key word(s): IPO CHRONEXT AG: sets price range at CHF 16 to CHF 21 per share 2021-09-28 / 07:25

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FOR RELEASE IN SWITZERLAND - THIS IS A RESTRICTED COMMUNICATION AND YOU MUST NOT FORWARD IT OR ITS CONTENTS TO ANY PERSON TO WHOM FORWARDING THIS COMMUNICATION IS PROHIBITED BY THE LEGENDS CONTAINED HEREIN. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. Press Release Zug, Switzerland, 28 September 2021

CHRONEXT AG sets price range at CHF 16 to CHF 21 per share

- The all-primary Offering comprises 9,524,000 new shares, with an over-allotment option of up to 1,428,600 shares, or 15% of total shares sold in the IPO (over-allotment option)

- The price range implies an offer size of approximately CHF 152 million to CHF 200 million, and CHF 175 million to CHF 230 million if the over-allotment option is exercised in full

- Assuming full placement of the offered shares and full exercise of the over-allotment option, the market capitalization will be CHF 520-680 million with a free float of approximately 32.5%. The market capitalisation will further increase to CHF 540-702 million upon conversion of a convertible loan at IPO

- CHRONEXT expects to receive gross proceeds of approximately CHF 152 million to CHF 200 million, predominantly to drive organic growth

- The offer period commences today, 28 September 2021, and is expected to end on or around 6 October 2021

- The listing and the first day of trading are expected to take place on or around 8 October 2021

Zug, 28 September 2021 - CHRONEXT AG ("CHRONEXT" or the "Company"), a leading and fast-growing digital platform for buying and selling new and pre-owned luxury watches offering an exclusive on- and offline customer experience, today announced the launch of its initial public offering (IPO) on the SIX Swiss Exchange AG (SIX). The publication of the offering memorandum and the start of the book-building will take place today, 28 September 2021.

Offering summary

The Offering announced today comprises 9,524,000 new shares, newly issued out of the Company's ordinary share capital against cash contributions. Additionally, the existing shareholders will make up to 1,428,600 existing shares available for a possible over-allotment comprising up to 15% of the shares sold in the IPO (over-allotment option). The price range for the offered shares has been set at CHF 16.00 to CHF 21.00 per share and will result in an offer size of approximately CHF 152 million to CHF 200 million, or CHF 175 million to CHF 230 million if the over-allotment option is exercised in full.

After completion of the Offering and assuming that all 9,524,000 new shares will be sold in the Offering, the existing shareholders will continue to hold approximately 22,937,860 shares and 68.0% of the voting rights in the Company, or 21,509,260 shares and 63.8% of the voting rights if the over-allotment option is exercised in full. 1,266,240 shares, equivalent to 3.8% of the voting rights, will be held in treasury by the Company. The free float will be 28.2%, or 32.5% if the over-allotment option is exercised in full.

Philipp Man, CEO and Co-Founder of CHRONEXT: "CHRONEXT's planned IPO is an important strategic milestone for the company since we began our journey in 2013. Listing in Zurich will give CHRONEXT the financial flexibility to conquer growth in the luxury watch sector and establish a strong foundation from which to seek further organic and inorganic expansion. I am delighted that investor interest in our offering has been so strong, and I am now looking forward to taking this next step as a listed company."

The book-building process commences today, 28 September 2021, and is expected to end at 12:00 (CEST) on 6 October 2021 for retail and private banking orders, and at 14:00 (CEST) on 6 October 2021 for institutional orders. The final offer price is expected to be published on or around 7 October 2021. Trading of the shares is expected to take place on or around 8 October 2021. CHRONEXT's trading symbol will be CXT and its ISIN is CH1127278153.

This Offering consists of: (i) a public offering in Switzerland; (ii) private placements in certain jurisdictions outside the United States and Switzerland in accordance with applicable securities laws and on the basis of exemptions provided by the Prospectus Regulation; and (iii) an offering in the United States only to "qualified institutional buyers" as defined in, and in reliance upon, Rule 144A or pursuant to another available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. All offers and sales outside the United States will be made in compliance with Regulation S under the Securities Act.

In light of the Company's rapid growth to date, the Company and the existing shareholders believe that the Offering represents a natural next step in the Company's development. In particular, the Company and the existing shareholders believe that a listing on SIX Swiss Exchange would offer increased financial flexibility through direct access to the capital markets, as well as raise the Company's brand visibility, credibility and profile to support additional growth opportunities.

The Company expects to use CHF 125 million of the net proceeds of the Offering to drive organic growth. A particular area of focus will be to build the CHRONEXT brand. In this respect, the Company plans to deploy the net proceeds of the Offering to increase brand awareness in core markets and establish a brand presence in new geographies. The net proceeds are also expected to be used to expand the Company's lounge network and to invest further in CHRONEXT's technology, in particular in respect of increasing integration with retailers and brands, continuing development of a mobile application, and building the technology required to introduce additional products and services as well as for net working capital expansion and debt repayment. The remaining net proceeds of the Offering are intended to be used to fund inorganic growth, in particular in core geographies as well as the United States and Asia.

The executive committee of the Company, including the Founders, have agreed with the Managers^[1] on a lock-up for the period ending 540 days after the First Day of Trading. The Company has agreed with the Managers on a lock-up for the period ending 360 days after the First Day of Trading. The members of the Board of Directors have agreed with the Managers on a lock-up for the period ending 360 days after the First Day of Trading. The existing shareholders providing the over-allotment shares (excluding any members of the Executive Committee or Board of Directors) have agreed with the Managers on a lock-up for the period ending 180 days after the First Day of Trading. All other shareholders of the Company have agreed with the Managers on a lock-up period ending 60 days after the First Day of Trading.

CHRONEXT's Board of Directors

CHRONEXT has made a series of high-profile appointments and nominations to its Board of Directors since the beginning of the year. Former Senior Vice President EMEA of eBay Inc, Jacob Fonnesbech Aqraou, who was responsible for the rise of eBay Inc to a globally active marketplace, was appointed Chairman of the CHRONEXT Board. CHRONEXT has also nominated several senior executives to join its board. These include Hamdi Chatti, who has proven expertise in the watch industry thanks to leading positions at the two largest global luxury goods groups, LVMH and Richemont; Gary Briggs, a heavyweight in the e-commerce and internet world who spent five years as Facebook CMO; former Tiffany & Co. Chief Brand Officer, Danielle Vitale, who has 30 years of experience at some of the most prestigious and well-known global luxury brands; Kristiina Leppänen (Group CFO of Enics), who has over 25 years' experience of international finance and leadership for companies in and outside Switzerland; and Tamara Lohan, co-founder and CEO of Mr and Mrs Smith, and founder, technology strategist and digital innovator. Finally, Norbert Platt, one of the most successful senior executives in the luxury goods industry and the former CEO of Richemont and Montblanc, has been appointed as Advisor to the Company.

About CHRONEXT:

CHRONEXT AG (www.chronext.com) was founded in 2013 by Philipp Man and Ludwig Wurlitzer. The platform for luxury watches employs over 120 people and offers around 7,000 models for sale. With headquarters in Zug (Switzerland) and a further 9 locations in Europe and one in Hong Kong as well as a watch workshop for quality and authenticity testing, the company is internationally positioned and guarantees a fast, convenient, and secure service. CHRONEXT simplifies the complex structures of the watch market and enables a unique buying experience. For more information, please visit: www.chronext.com

Press Contact: Lucas Hermanns CHRONEXT Service Germany GmbH [phone] [e-mail] Harald Kinzler Kekst CNC [phone] [e-mail]

Investors: Dagmara Robinson CHRONEXT AG [phone] [e-mail]

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September 28, 2021 01:26 ET (05:26 GMT)