Sunrise finds silver lining of SNB decision, forges ahead with IPO plans

16 Jan 2015

Swiss full service provider Sunrise, which is owned by private equity firm CVC Capital Partners, has said that the central bank’s sudden decision to scrap its cap on the Swiss franc will not derail its plan to list its shares on the SIX Swiss exchange. Reuters writes that the Swiss National Bank’s (SNB’s) decision yesterday to remove the cap caused the currency to ‘soar’ against the euro, whilst stocks were ‘sent… plunging amid fears for the export-reliant Swiss economy.’ As previously reported by CommsUpdate, on Wednesday this week Sunrise announced its plans to hold an initial public offering (IPO), expecting initial gross proceeds of CHF1.35 billion (USD1.404 billion). Despite the SNB’s announcement, Sunrise said that its stock market debut would still go ahead, adding that its costs in foreign currencies outweighed revenues. A stronger Swiss franc would mean that costs in foreign currencies are cheaper, the operator explained: ‘Thus the effect for Sunrise is rather neutral to positive. The decision of the Swiss National Bank therefore has no impact of Sunrise’s IPO plans.’

Switzerland, Sunrise Communications