Owners of Germany's Evonik confirm plans for IPO

25 May 2012 11:59  [Source: ICIS news]

LONDON (ICIS)--Evonik's owners confirmed on Friday that they will go ahead with plans to list the shares of the Germany-based specialty chemicals company on the Frankfurt stock exchange.

RAG-Stiftung and private equity firm CVC said the first trading day is expected to be before the summer break, but a specific date was not disclosed. Pricing details of the initial public offering (IPO) were also not offered.

The companies said shares are to be offered to private and institutional investors in Germany and Luxembourg through the public offering. Outside of these countries, the plan is to offer the shares to institutional investors via private placements.

“Despite the challenging conditions on the financial markets, we are entering the intensive phase of preparations for the planned stock exchange listing with great confidence,” said Klaus Engel, chairman of the executive board of Evonik Industries.

“A stock exchange listing will make Evonik even more attractive,” Engel added.

RAG is a German coal foundation. Proceeds from Evonik’s IPO will go towards paying for environmental and other costs related to the closure of coal mines in North Rhine-Westphalia state.

“The company is extremely well prepared for the planned stock exchange listing, which plays an important role in RAG-Stiftung’s financing of the perpetual costs of the German hard-coal mining industry, and thus in meeting the foundation's purpose,” said Wilhelm Bonse-Geuking, chairman of the executive board of RAG and of Evonik’s supervisory board.

On 21 May, RAG – which holds a 74.99% majority stake in Evonik – said its board approved management’s plan to prepare Evonik's IPO. 

At the time, Bonse-Geuking had said RAG and CVC – which holds the remaining 25.01% of Evonik – would keep a close eye on “not insignificant and rising risks” in financial markets, and would adapt timelines for the IPO as necessary.

In 2008, RAG suspended plans for Evonik’s IPO because of unfavourable capital market conditions. Instead, RAG sold a 25.01% stake of Evonik to CVC.

Financial institutions Deutsche Bank and Goldman Sachs are the joint global coordinators and joint bookrunners for the planned IPO, while Merrill Lynch, Credit Suisse and JP Morgan are mandated as additional Joint Bookrunners.

The IPO advisor for RAG-Stiftung, CVC and Evonik is Lilja & Co.

($1 = €0.80)

By: Franco Capaldo
+44 (0)20 8652 3214

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