Sept 25 (Reuters) - VIA Optronics AG's shares
underwhelmed in their debut on the New York Stock Exchange and
fell as much as 35% on Friday, after the Germany-based company
priced its initial public offering at the lower end of its
Earlier on Friday, VIA sold 6.25 million American Depository
Shares to raise about $94 million.
Shares of the firm, which makes interactive display systems
for a number of sectors including automotive and industrials,
opened at $12 apiece compared with the IPO price of $15 per ADS.
VIA's debut also came on a day when U.S. capital markets
were set for their longest weekly losing streak in a year as
fears about the coronavirus' impact on the economy weighed on
According to experts tracking IPOs, investors punished the
stock for being overvalued and raised concerns over the
"Investors are concerned about if this company will be able
to make money" said Jay Ritter, an IPO expert and professor at
the University of Florida. "At the offer price, the valuation of
over $300 million was too high."
For the six months ended June 30, the company posted revenue
of 64.8 million euros ($72.6 million), down 8% from a year ago.
Its net loss narrowed to 867,000 euros from 2.5 million euros a
According to CEO Jurgen Eichner, the pandemic did not
impact VIA's plans to go public, although it affected the
company's performance in the first quarter.
"In the second quarter, we were already back on track. This
was the right point in time (for us to go public), because we
cannot sustain the growth organically," Eichner said.
VIA's customers include car-makers like BMW AG,
Ferrari NV and General Motors Co and tech
companies like Lenovo Group Ltd and Dell Technologies
($1 = 0.8599 euros)
(Reporting by Madhvi Pokhriyal in Bengaluru; Editing by Amy
Caren Daniel and Shailesh Kuber)