Evonik finally launches giant IPO in Germany

City A.M. Reporter
GERMAN chemicals giant Evonik is due to make its debut listing in Frankfurt today, in what could be Europe’s largest listing of the year.

Around 14 per cent of the company will be floated, following pre-listing placements with investors ­– an unconventional route into the market.

Nonetheless, a price of €32.20 per share will gives the firm a value of nearly €15bn.

Investment banks Deutsche Bank and Mainfirst are believed to have placed up to two per cent in Evonik at the fixed price of €32.20 per share.

The company’s owners, RAG and CVC Capital Partners, had previously placed a total of 12 per cent of Evonik’s shares with investors.

The debut, in Frankfurt, is highly anticipated, as the firm has repeatedly delayed its initial public offering (IPO).

Plans were put on ice in the autumn of 2010 due to market weakness, and again scrapped last summer – again because of poor macroeconomic conditions denting sentiment among equity traders.

Prior to the placings, RAG owned 75 per cent of Evonik while private equity firm CVC owned 25 per cent.