Springer Nature, the publisher of renowned journals such as Nature and Scientific American, has announced plans for an initial public offering (IPO) on the Frankfurt Stock Exchange by the end of the year. The IPO will include a 200 million euro ($220 million) capital increase and the sale of existing shares. Currently, Holtzbrinck Publishing Group and BC Partners hold 53% and 47% stakes in the company, respectively.

The company aims to use the primary proceeds from the IPO to reduce its debt and optimize its financing structure. Springer Nature's financial leverage ratio has already improved, dropping from 4.6 times in 2019 to 2.9 times. Additionally, the company plans to pay a 25 million euro ($27.5 million) dividend this year, with future annual dividends expected to be around 50% of adjusted net income.

The IPO could value Springer Nature at up to 9 billion euros ($10 billion), including debt. CEO Frank Vrancken Peeters highlighted strong investor momentum, which provides BC Partners an opportunity to exit its investment. The specifics of the secondary structure, involving the placement of existing shares from BC Partners, will be determined later, according to CFO Alexandra Dambeck.

Springer Nature's IPO will be closely monitored by other companies planning listings in Europe, especially following successful offerings from Swiss skincare firm Galderma and private equity firm CVC Capital Partners this year. Leading the IPO are Morgan Stanley, Deutsche Bank, and JP Morgan, with BNP Paribas, Commerzbank, Goldman Sachs, and UniCredit as bookrunners.

The company had previously postponed its IPO plans in 2020 due to the COVID-19 pandemic. In 2023, Springer Nature reported group revenues of 1.85 billion euros and an adjusted operating profit of 511 million euros.

This IPO represents a significant step in Springer Nature's journey, as emphasized by CEO Peeters, and will be a critical test for the market.