Vorarlberg firms see little reason to go public

Many Vorarlberg companies are successful internationally, but few are listed on the stock market because going public brings costs and gives new shareholders a say, ORF reports. Martin Hebertinger, an economist at the Vorarlberg University of Applied Sciences, sees little reason for many businesses to take that step.

Wolford listed its “Lady share” on the Vienna Stock Exchange in 1995, followed 11 years later by Dornbirn lighting manufacturer Zumtobel. They remain Vorarlberg’s only two listed companies, while many other large businesses remain family-owned or held by foundations.

A stock market listing can provide companies with fresh capital for investment by selling new shares. But it also brings in additional owners and can change existing ownership arrangements. For family businesses, Hebertinger said, this can be a significant shift because they must take new shareholders’ interests into account.

Stable ownership can also help companies plan for the long term without having to follow the capital market’s short-term demands, he said. Many Vorarlberg businesses instead keep profits in the company to fund growth. Foundations can also build up funds and reinvest them, making the stock market just one of several ways to finance major projects.

The costs of listing can be substantial. For a company issuing shares worth 100 million euros, one-off expenses could reach around 10 million euros, according to Hebertinger. These include fees for lawyers and investment banks, as well as presentations for potential investors. Ongoing costs could add another one to two million euros a year for investor relations, shareholder meetings and regular communication with the market.

Trading activity also matters. If shares are rarely bought and sold, investors may find it harder to acquire or sell them, making the stock less attractive to large investors such as insurers and pension funds.

Over five years, Wolford’s share price fell by around 71 percent and Zumtobel’s by around 54 percent. Wolford has faced falling sales and heavy losses, while Zumtobel has been affected by weak construction and industrial conditions and lower profits. Both companies recently reported improved results: Zumtobel returned to profit in the first quarter of 2026/27, and Wolford reduced its operating loss in the first half of 2026.

Hebertinger does not expect many more Vorarlberg companies to list in the coming years. The former Vorarlberg Power Plants, known as vkw, left the stock market in 2013. After a years-long legal dispute over compensation for minority shareholders, illwerke vkw later had to pay around 10.5 million euros more, plus interest and legal costs.