RAG set to scrap Evonik float again as market turmoil bites

City A.M. Reporter
THE OWNERS of German chemical company Evonik are set to scrap plans for what could have been Europe’s biggest initial public offering in more than a year, four people familiar with the matter said yesterday.

A string of share flotations across the globe have been blown off course by the volatility of financial markets in recent months, arising from fears the Eurozone debt crisis will drag down economic growth.

The sources said the RAG Foundation was likely to cancel the Evonik IPO today, which would be the second time it has pulled plans for a flotation. RAG said last year it was preparing an Evonik IPO but put the plans on ice in September due to market weakness.