CEO, Auto News, ET Auto
By Alexandre Hubner
VORBACH: Novem gears up for an IPO as Chinese automakers ramp up production of premium cars, opening up new business opportunities for the German interior supplier, said managing director Guenter Brenner.
Novem could be valued at around 1.5 billion euros in a possible IPO, and an IPO could be announced as early as next week, people familiar with the matter said.
“We can see that Chinese automakers are now starting to build their own premium vehicles and also want to attack the global market,” Brenner told Reuters, adding that Novem should benefit from increased demand for its products.
“An IPO would be an almost logical step after our bond issue,” he said, adding that the company was working with JPMorgan, Berenberg on preparing for such a deal.
Dutch billionaire family Brenninkmeijer, best known for their fashion retailer C&A, owns Novem through their Bregal Unternehmerkapital fund and could finally cash in, after a first release attempt was canceled in 2019.
Based in Vorbach near Bayreuth, Novem supplies car manufacturers such as Audi, BMW, Daimler, Porsche and Maserati with door trim and decorative functional elements for interior parts such as dashboards.
“Novem has a 46% market share in the premium segment concerned. Last year we fitted 4.2 million vehicles with 26.8 million parts, ”said Brenner.
His peers include Ningbo Joyson and Ningbo Huaxiang Electronic.
Novem employs 5,800 people and recorded earnings before interest, taxes and depreciation of around 120 million euros on sales of 646 million euros during the 2019/20 financial year.
In March, Moody’s raised Novem’s credit rating outlook to stable, citing the recovery in revenues and margins after the pandemic bottomed.
“We had already achieved margins of 17-18% before the coronavirus crisis. We still consider this a realistic target,” said CFO Johannes Burtscher, adding that the company expects to annual revenue growth of 5-6% in the medium term.