16 March 2010 15:58 [Source: ICIS news]
TORONTO (ICIS news)--Brenntag expects its initial public offering (IPO) to result in a capital increase of up to almost €600m ($822m), the Germany-based international chemicals distribution major said on Tuesday.
Brenntag would use capital increase primarily to further expand its market position, particularly in Asia, South America and e?xml:namespace>
The IPO share price could range from €46 to €56, with up to 10.5m shares going towards the capital increase, which would range from €483m to €588m, the company said.
The IPO's total placement volume was up to 14.95m shares, or €762.5m, assuming a mid-point share price of €51. This included a 1.95m “greenshoe option,” which gives the IPO’s underwriters the right to sell more shares than originally planned if demand from investors should be higher than expected.
Assuming the greenshoe option was fully exercised, Brenntag’s free float would be close to 30% after the IPO, it said.
The company did not detail how much of the IPO's proceeds were expected to go to its current owners.
However, the current majority owners – a group of funds advised by private equity firm BC Partners – would “remain invested significantly” in the company even after the IPO, Brenntag said.
Brenntag chief executive Stephen Clark said the IPO should be attractive to investors, given the company’s “resilient business model” and growth potential.
“In economically rather difficult times Brenntag has proven to be to a large extent independent from business cycles based on its complete geographic coverage and diversity across industries, customers, products and suppliers,” he said.
The IPO offer period was expected to run from 16 to 26 March, with a listing planned for 29 March on the
($1 = €0.73)
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