Few Vorarlberg firms go public as family owners weigh costs

Few of Vorarlberg’s internationally successful companies are listed on a stock exchange because a public offering can bring high costs and give new shareholders a say in company decisions, ORF reported. Martin Hebertinger, an economist at Vorarlberg University of Applied Sciences, said many businesses have little reason to take that step.

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

A stock market listing can provide fresh capital for investment by selling new shares. But it also brings additional owners and can change existing ownership arrangements. Family businesses that have made decisions within a close circle may have to consider the interests of other shareholders, Hebertinger said.

Stable ownership can also help companies plan for the long term, without having to respond as closely to short-term pressure from capital markets. Many Vorarlberg businesses instead retain profits to finance growth. Foundations can also accumulate and reinvest funds, Hebertinger said, meaning the stock market is not the only way to pay for large projects.

The costs of listing can be substantial. For a company selling 100 million euros’ worth of shares, one-off expenses could reach about 10 million euros, including fees for lawyers and investment banks and the cost of presentations to potential investors, Hebertinger said. Annual expenses in such a case could amount to one to two million euros for investor relations, shareholder meetings and regular communication with the market.

It also matters whether shares attract enough buyers and sellers. If trading is limited, investors may find it harder to buy or sell shares, making them less attractive to large investors such as insurers and pension funds.

Over the past five years, Wolford’s share price has fallen by about 71 per cent and Zumtobel’s by around 54 per cent. Wolford has faced falling revenue and heavy losses, while Zumtobel has been affected by weakness in the construction and industrial sectors and lower profits. Both companies have recently reported improving 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 Stations, known as vkw, left the stock exchange in 2013. After a years-long legal dispute over compensation for minority shareholders, illwerke vkw later had to pay about 10.5 million euros more, plus interest and legal costs.