DEAG, the prominent German live events group, is set to make a significant comeback to the Frankfurt Stock Exchange in the first quarter of this year after its delisting in 2021 amid the COVID-19 pandemic.
The Berlin-based company is planning an offering that involves a capital increase ranging from $43 million to $54 million, coupled with an additional offering of existing shares from current shareholders.
Having initially gone public in 1998, DEAG was delisted in January 2021 during the pandemic following the acceptance of a takeover offer from its largest shareholder, Apeiron Investment Group, and its Malta-based subsidiary, Musai Capital.
The funds generated from the re-IPO will be utilized to expedite the company’s growth in alignment with its Buy & Build acquisition strategy, with a specific focus on “high margin” ticketing businesses and live entertainment.
DEAG is set to restructure its business into two primary segments: live entertainment and ticketing & service. A key aspect of its strategy involves increasing the proportion of the company’s ticket sales through its proprietary ticketing platform.
DEAG co-CEO Detlef Kornett expresses confidence in the growth potential, stating, “We believe that there is an enormous growth potential in our business.”
The company aims to achieve this by directing ticket sales to its own platforms and acquiring companies that enhance synergies within the group, thereby fortifying its expanded growth strategy in both live entertainment and ticketing and services businesses.
Kornett emphasizes the foundation of DEAG’s business, citing strong historical growth evident in the increasing number of events offered since 2019, recurring revenues from over 30 festivals, and the creation of intellectual property ranging from children’s musicals to lightrails. The co-CEO also highlights hallmark events like the New Year’s Eve celebration at the Brandenburg Gate.
In November, DEAG reported achieving a “new level of revenue and earnings” in its financial results. The company witnessed a substantial 73.3% increase in revenue, soaring from $134 million to $232 million compared to the last pre-COVID year of 2019. Additionally, EBITDA experienced a significant rise, showcasing the company’s resilience and positive trajectory.
