RENK shares will be issued in the lower third of the price range for the Augsburg armored transmission manufacturer’s IPO.
The accompanying investment banks gave major investors an expected price of 15 to 16 euros on Tuesday. In this area the issue is oversubscribed. The official range goes up to 18 euros. Up to 27.03 million RENK shares could still be subscribed for by Wednesday, and the traditional company wants to celebrate its return to the Frankfurt Stock Exchange on Thursday.
In the narrowed range, RENK is valued at 1.5 to 1.6 billion euros. The owner, the financial investor Triton, will receive proceeds of between 405 and 432 million euros from the IPO, but will retain at least a 73 percent stake. Triton bought the company, which formerly belonged to MAN, from the car manufacturer Volkswagen at the beginning of 2020 for almost 700 million euros.
RENK builds large gear units and is currently experiencing a boom due to the upgrade. Gearboxes for tanks and ships for the navy make up 70 percent of the business, with the rest being civilian business such as gearboxes for compressors.
Munich (Reuters)
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