Read time: 9 mins.
Key highlights:
- Pros & cons: The reality of being a publicly listed company.
- Future proofing: How voxeljet came to the decision to delist from the Nasdaq.
- What's to come: Updates on voxeljet projects with BMW, GE Vernova & more.
This article was first published via the Additive Insight newsletter on May 30th, 2024.
Amidst the toing and froing of 2023’s failed Stratasys mergers, it went largely unnoticed.
The story that had dominated last year’s additive manufacturing trade media headlines distracted most from the goings-on elsewhere. With takeover bids flying left, right, and any which direction that wasn’t on target, not much notice was being paid to the likes of voxeljet, who have successfully commercialised multiple 3D printing technologies, who have secured long-time custom with many household names, who have basically been around forever.
But on the day that the merger agreement between Stratasys and Desktop Metal was terminated – the day that Ric Fulop revealed to TCT that Desktop Metal would now continue as an independent company – voxeljet announced it too was thinking about how to chart a path forward. Its Management and Supervisory Boards were coming together to consider whether a strategic partnership, a joint venture, a merger, or some other strategic rerouting would be the best next step. The company didn’t explain why, but given the economic climate, it would be fair to assume the voxeljet leadership was seeking to understand how it could future-proof the running of the company.
It brings us to March 13th, 2024. A quieter day in the world of AM. A day where the AM industry had time to take in what the voxeljet press release was telling it. Over ten years after becoming a public company, voxeljet was voluntarily delisting from the Nasdaq stock exchange and continuing instead as a public company exclusively trading shares ‘over the counter’ (OTC). It was a decision taken to reduce expenses, with ‘the benefits associated with a Nasdaq listing’ not deemed to be justifying the ‘cost and demands on management’s time.’
In this Additive Insight Deep Dives newsletter, we explain the realities of operating as a listed company, how voxeljet came to its decision to delist, and what to expect next from the company.
But first, why do companies list in the first place?
Making the A-list
Hundreds, if not thousands, of companies take the same step every year. Often after numerous rounds of fundraising or otherwise after a prolonged period of success, a company will commence the sometimes lengthy and usually complex proceedings to go from a private company to a public company.
It is common for the public listing to be a founder’s holy grail, the perfect exit to a journey that has turned an idea or a technology, a product or a service, into a large enterprise capable of employing hundreds of thousands of staff and bringing in millions in revenue. Investment can come from the mega wealthy or your average Joe, hedge funds or other public organisations. The public markets are designed for companies to procure cash from various entities and for the public to benefit from the successes of the world’s biggest enterprises.
For voxeljet in 2013, it saw numerous advantages to take the leap.
“One of them is access to capital, for example, through issuance of stock,” voxeljet Chief Operating Officer Rudolf Franz told TCT. “This allows you to fund growth initiatives, invest in R&D, pursue strategic acquisitions, and more. Another advantage is transparency and accountability. Regulatory oversight and disclosure requirements ensure that you meet these standards.”
Of course, becoming a public company comes with a certain sheen and gravitas. “You can also benefit from enhanced visibility and credibility,” added founder and CEO Ingo Ederer. “There is always a lot of buzz around publicly traded companies, which increases your reach to make announcements and gain attention.”
Give/Take
“The cost-benefit analysis revealed that the potential drawbacks of being a public company outweigh the advantages.”
It is enough for many to make it their north star. Although Essentium never completed its public listing two years ago, CEO Blake Teipel was never shy in admitting that it had been the company’s aim from the very start, while the way the likes of Desktop Metal and Velo3D going from one investment round quickly onto the next suggests a listing was always in their sights too. There is a reason pretty much every household brand lists on a stock exchange, but it doesn’t come without its challenges.
Though many see a public listing as a way to raise capital and fund missions, the cost of being a public company is mooted as one of the drawbacks. A venture capitalist speaking to TCT on the condition of anonymity noted that: “Being public adds so much cost to your company that I know most could be profitable, it’s just a fact that they are spending a seven-digit amount, quarterly, for legal fees and reporting and being compliant to the stock exchange. It destroys their whole performance.”
