Royal Tag goes public

Royal Tag, founded in 2006, specialises in RFID applications in the fields of animal identification, industrial laundries and other selected industries. The company has its own research centre and has developed many advanced material and production technologies that are protected by a number of patents. Royal Tag also makes its specialist knowledge available to supervisory authorities, national testing and certification bodies and universities. R&D and manufacture of the products are undertaken in Switzerland to ensure the highest standards of quality and reliability.
 
Royal Tag sold over 3 million tags and 1,200 readers in 2011, generating revenues of approximately CHF 3.9 million. Due to ongoing investments in future growth, a loss of CHF 1.3 million resulted. Most of the company's CHF 7 million revenue forecast for 2012 is already secured by the current order book. By 2016, it expects sales to exceed CHF 39 million and is targeting an EBITDA margin of over 20% and an EBIT margin of over 15%.
 
The 251,400 shares with a nominal value of CHF 50 each are mainly owned by investors who have supported the company to develop over the last years. In light of the company's goals for growth, the current owners have decided to broaden the circle of shareholders by selling 40% of their shareholding, or around 100,000 shares, to third parties. As a consequence the funding of future growth will be secured as shareholders have committed themselves in a shareholder agreement to provide the company with a subordinated loan for 60% of the sales proceeds that exceed the par value of the shares issued.
 
In order to improve both tradability and liquidity, the shares will be tradable on the OTC X-platform of Berner Kantonalbank from 28 September 2012. The IPO prospectus with detailed information was published last Wednesday. In the first half of September the company will present to interested investors.