The previous posters have made some good points in the Auroora vs. Relais comparison.
I would also like to bring up the fact that Auroora’s CEO is the third-largest shareholder in the company. CEO Rauhala owns over 5% of the company, meaning he has significant skin in the game. This is quite an appealing starting point for being in the same boat as the CEO. It will be interesting to see if the insiders are tempted to sell once the IPO lock-up period ends and the share price has risen significantly.
Another thing that speaks in favor of Auroora is sector diversification. Auroora has a greater opportunity than Relais to diversify its business across different sectors by acquiring companies in various business areas. Granted, Auroora has an industrial focus, so one could argue about whether the diversification is truly significant.
Overall, many industrial serial acquirers have been able to demonstrate strong organic growth in Q2, which has certainly raised expectations for Auroora. As stated in previous posts, I believe Relais’s valuation is weighed down by its debt burden; the company’s opportunities are clearly more limited when moves require firing up the “share printer.”
At the time of the IPO, I was reasonably skeptical of Auroora’s business model, but I have warmed up to the company, and my portfolio now contains an equal amount of Relais and Auroora.