France-based Groupe Gorgé—a group specializing in the provision of high-tech products and services for the safety of people and property as well as 3D printing—plans to launch an initial public offering (IPO) on its 3D printing division Prodways. Subject to market conditions, the company intends to seek a listing on the Euronext Paris stock exchange in 2017.
The IPO is expected to facilitate Prodways’s second stage of growth, further increasing its already significant share of the 3D printing market. It will take the form of a capital increase and therefore see Groupe Gorgé remain the division’s majority shareholder.
Prodways’s revenue has risen from 0.1 million EUR (0.1m USD) in 2013 to more than 25 million EUR (26.4m USD) in 2016, and its headcount increased from just 1 to 248 during the same period. This, the company says, has been achieved through organic growth, substantial capital expenditure and targeted acquisitions in the 3D printing industrial segment.
The company has two divisions, namely Systems and Products. Systems—which is dedicated to 3D printers and materials—achieved 13.1 million EUR (13.8m USD) in revenue during 2016, 90 percent of which was in the international market. Products—which focuses on 3D parts on request and industry applications—earned the company 12.1 million EUR (12.8m USD) in revenue during 2016.
Originally set up to develop 3D printers, Prodways has introduced two ranges under the ProMaker brand. The more recent of the two employs the company’s own, patented direct light processing (DLP) MOVINGLight technology. Prodways’s expansion is, in part, attributable to Groupe Gorgé’s 2015 acquisitions of 3D printing service provider Initial and producer of desktop selective laser sintering (SLS) 3D printers Norge. The company has also established a number of strategic partnerships, the most recent being announced in November last year with Arkema, a major producer of specialty polymers.
According to the Wohler’s Report, the industrial 3D printing market is expected to achieve a compound annual growth rate (CAGR) of 31 percent during 2015-21. Excluding potential acquisitions, Prodways is targeting growth of at least four percentage points higher than the market until 2019. The company aims to break-even in earnings before interest, taxes, depreciation and amortisation (EBITDA) in Q4 2017 and reach an EBITDA margin in the double-digits by 2019.