German large-format 3D printer manufacturer BigRep has made its debut on the Frankfurt Stock Exchange.
Last year, the firm signed a non-binding letter of intent (LoI) with the special purpose acquisition company (SPAC) SMG Technology Acceleration SE. This business combination has now succeeded in its goal of transitioning BigRep into a publicly traded entity.
The SPAC has been renamed and is being listed as BigRep SE, with Dr. Sven Thate and Dr. Reinhard Festag acting as CEO and CFO, respectively. SMG Holding, an investor focusing on European SMEs, facilitated the move as an initial public offering (IPO) sponsor and holds a stake of around 6% in the combined entity.
As a listed company, BigRep will work to continue its acquisition-based buy-and-build expansion strategy. “Going public allows us to think bigger and pursue our buy-and-build strategy,” explained Thate. “We see great growth and synergy opportunities by expanding inorganically.”
This approach saw BigRep acquire HAGE3D at the end of 2023 to broaden its large-format 3D printing portfolio.
BigRep SE’s shares bear the International Securities Identification Number (ISIN) LU2859870326 and the securities identification number (Wertpapierkennnummer, WKN) A40H84. The company’s ticker symbol is B1GR, and the initial share price was EUR 11.20. This price fell to a low of EUR 5.00 on 28 August.
“BigRep SE’s stock market listing is a significant step for us. It demonstrates the success of our strategy of taking fast-growing SMEs public,” commented Dr. Stefan Petrikovics, CEO of SMG Holding. “BigRep has the potential to establish itself as a European champion in the field of additive manufacturing.”
BigRep goes public on the Frankfurt Stock Exchange
BigRep marked its entry into the public stock market with a bell-ringing ceremony. A customary tradition in the financial world, the ceremony was held in the Frankfurt Stock Exchange’s main trading hall. At the event, BigRep displayed several of its 3D printed products. This included NERA, the world’s first 3D printed E-Motorcycle.
The large-format 3D printer manufacturer believes that listing on the Frankfurt Stock Exchange will unlock greater visibility and access to a broad base of international shareholders. This will reportedly fuel its ‘ambitious expansion plans’ to innovate with new technologies and advance its product offerings.
As a listed company, BigRep will continue to expand through the acquisition of other additive manufacturing companies. Thate believes ‘highly fragmented’ 3D printing market conditions will increase consolidation pressures, “giving us a chance to use our public listing to benefit our shareholders.”
This buy-and-build approach sees BigRep incorporate new companies and technologies into its supply chain and services. Most recently, the firm acquired Austrian 3D printer manufacturer HAGE3D in November 2023.
Following this deal, BigRep launched the Altra 280 and IPSO 105. These high-temperature industrial FDM 3D printers were initially developed and sold by HAGE3D as PRECISE and MEX, respectively.
According to BigRep, the Altra 280 and IPSO 105 offer high-speed, precise and automated production of full-scale, industrial-strength parts. They are therefore well suited to demanding applications within the aerospace, defense and automotive sectors.
Looking ahead, BigRep hopes to leverage HAGE3D’s established supply chain, global set-up, and partner network to scale the business and increase customer value.
3D printing SPAC mergers: a poisoned chalice?
SPAC mergers offer privately traded companies a quicker, less regulated route to going public than traditional IPOs allow. This has made them popular among 3D printing companies. However, these moves have not always been successful in the long run.
In 2020, Massachusetts-based 3D printer manufacturer Desktop Metal (DM) went public on the New York Stock Exchange (NYSE) after merging with SPAC Trine Acquisition Corp. At the time, it was reported that this move could raise $575 million of investment for the company, which possessed an equity valuation of $2.5 billion.
The company planned to use this funding to accelerate its growth and capitalize on the increasing adoption of industrial 3D printing. However, four years on, Desktop Metal is set to be acquired by Nano Dimension in an all-cash transaction worth approximately $183 million, or $5.50 per share.
This deal follows Desktop Metal’s poor market performance, with CEO Ric Fulop stating that the company would face a “fatal prognosis” if the acquisition fails. DM has been actively seeking a merger over the past two and a half years amid “concerning” sales activity and a weakening financial outlook.
Q2’24 saw DM record revenue of $38.9 million, a 26.9% decrease from $52.3 million in the same period last year. The company’s operating loss grew 108.8% Y/Y to -$101.3 million.
Elsewhere, 3D printing service provider Shapeways went public via a SPAC deal with Galileo Acquisition Corp (GLEO) in 2021. At the time, the company’s CEO called the move “a significant milestone” that would allow it to “empower digital manufacturing at scale.” The deal valued Shapeways at $410 million and generated $195 million in net proceeds for the company. This ultimately gave the enterprise a total equity value of $605 million.
Following the completion of the Shapeways SPAC deal, the company projected rapid annual growth of 95% between FY 2021 and FY 2022. It projected impressive revenues of $150 million in FY 2023, rising to $250 million in FY 2024. This was an optimistic outlook given that Shapeways had only generated $31.8 million and $44 million in FY 2020 and FY 2021, respectively.
The firm has failed to live up to these lofty expectations. In Q3 2023, the company posted revenue of just $8.4 million, a gross profit of $3.4 million, and a substantial net loss of -$19.4 million, up 198.5% YoY. 2023 revenue came to just $34.5 million.
Amid these poor results, Shapeways filed for bankruptcy and ceased operations earlier this year. The company’s executive team of Greg Kress, chief executive officer, Alberto Recchi, chief financial officer, and Andy Nied, chief operating officer, all subsequently resigned. The company has since relaunched in Europe as Manuevo BV after its Eindhoven-based team and two co-founders acquired the firm’s defunct assets.
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Featured image shows BigRep’s bell-ringing ceremony at the Frankfurt Stock Exchange. Photo via BigRep.
