Sat. May 21st, 2022

London stock exchange debut slams truck company Eurowag upside down as shares fall 10%


Eurowag, which recruited City grandee Paul Manduca (pictured) as chairman, fell 10% on its London stock exchange listing

Eurowag, which recruited City grandee Paul Manduca (pictured) as chairman, fell 10% on its London stock exchange listing

Shares in trucking service Eurowag fell as its debut in the London stock market fell flat. The Czech business, which recruited City great Paul Manduca as chairman, had hoped to list with a value of £ 1.7 billion on Thursday.

But the float was delayed by a day and saw Eurowag shares rise to 150p – valuing the company at just over £ 1bn. Shares fell immediately, closing 10 percent at 135p, leaving Eurowag worth around £ 900m. The deficient float raised new questions about the state of the London market for so-called initial offices (IPOs) following a series of successes and failures in the past year.

Eurowag provides payment and technology services to hauliers. Self-proclaimed ‘the Uber of trucking’, it gives small haulage companies access to services and technology so they can streamline processes similar to larger companies.

It allows smaller haulage companies — often family businesses with no more than half a dozen trucks yet, whose operations are cross-border — to use efficient payment systems for fuel and tolls, as well as insurance and VAT refund claims.

CEO Martin Vohanka, 45, founded the company in 1995. It has grown into an international technology company with customers in 30 countries, mainly throughout Europe.

Eurowag employs more than 1,000 people and reported sales of £ 108 million. In 2020 and a profit of £ 49 million.

It is backed by private equity giant TA Associates, which before the float owned 32.7 percent, while Vohanka owned 59.1 percent. The company hired 69-year-old Manduca as chairman to steer it through the float.

Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said stock quotes often come with volatility and that the price drop was not ‘too surprising’ given the reduced price and delayed listing.

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