German photovoltaics firm Schott cancels IPO

08 October 2008 19:53  [Source: ICIS news]

TORONTO (ICIS news)--German photovoltaics firm Schott Solar has cancelled plans for an initial public offer (IPO) due to the drastic deterioration and turmoil on capital markets, it said on Wednesday.


“The renewed drastic deterioration of conditions on international capital markets in past days has prompted us to make this decision,” the company said.


The sudden decline had been unforeseeable, it said. Schott Solar did not say if or when it may go ahead with an offer.


Meanwhile, the company had backing from its parent, glass maker Schott AG, to fund plans to expand capacities in the US and Europe, it said.


In particular the US offered good opportunities following Congress' recent extension and broadening of tax credits for solar investments, the company said.


Photovoltaics are an important end market for polyvinyl butyral (PVB) and other chemicals.


With targeted gross proceeds of up to €546m ($748m) Schott Solar’s IPO would have been Germany’s largest this year, analysts said.


Apart from Schott, only rail carrier Deutsche Bahn had shown serious interest in raising money on equities markets, they added.


Germany's DAX stock index lost another 5.88% on Wednesday, closing at a 52-week low of 5,013.62. This compares with the index's 52-week high of 8,117.70 in December 2007.


($1 = €0.73)


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