In what was hailed as the largest initial public offering in Europe this year, Scandinavian Tobacco Group A/S went public yesterday on the Copenhagen Nasdaq with an initial market capitalization of $1.5 billion. Shares of the company debuted at 100 Danish kroner per share ($15.22) near the middle of the price range the company had targeted prior to the IPO.
The shares, trading under the symbol STG, dipped slightly in the opening day, but recovered and were trading at an even 100 kroner on Tuesday morning.
Scandinavian Tobacco Group, which is headquartered in Søborg, Denmark, has about 8,000 employees and is one of the world's largest tobacco concerns, with 2014 revenues of 6.1 billion kroner ($931 million). Roughly one quarter of its net revenues come from the premium, handmade cigar business: It owns General Cigar Co., the maker of Macanudo, La Gloria Cubana and many other premium cigar brands, as well as mega-cigar retailer Cigars International. Among General's many cigars is the CAO Flathead V660 Carb, Cigar Aficionado's No. 3 cigar of 2015.
Machine-made cigars are STG's largest segment, accounting for 42 percent of sales. It also sells pipe tobacco (Captain Black is one of its brands), pipes and fine-cut tobacco.
Reporting of Scandinavian Tobacco Group's imminent public offering first appeared in the February 2, 2016 issue of Cigar Insider.