Hochtief eyes up 1bn IPO in its concessions business arm

City A.M. Reporter
GERMAN construction group Hochtief aims to raise as much as &euro;1bn (&pound;989m) by floating a minority stake in its concessions infrastructure business in what would be Germany's biggest IPO in two years.<br /><br />The issue will be Germany&rsquo;s first major initial public offering (IPO) since diesel engine maker Tognum&rsquo;s &euro;2.1bn listing in 2007, before markets were crimped by the global economic crisis.<br /><br />Hochtief will offer new and existing shares for between &euro;24 to &euro;29 each from 20 November to 3 December and sees the potential proceeds ranging from &euro;882m to &euro;1.005bn.<br /><br />The number of shares will be adjusted so that Hochtief will keep at least about 51 per cent in the business, it said. <br /><br />The stock market listing is set for 4 December.<br /><br />Hochtief and its local rival Bilfinger Berger have both announced plans to float parts of their businesses, reversing a delisting trend in infrastructure assets.<br /><br />Hochtief is turning to a listing of its Concessions unit to boost valuation and raise cash for new projects, while Bilfinger is looking to float its Australian construction and infrastructure unit to move further into services.