Connect to share and comment

Evonik to raise nearly 350 mn euros in share placement

PlacardEnlarge
(Globalpost/GlobalPost)

German speciality chemicals maker Evonik Industries stands to raise nearly 350 million euros ($455 million) from a private placement of shares, the bank handling the issue, Deutsche Bank, said Wednesday.

Deutsche Bank said in a statement that 9.32 million shares -- or around 2.0 percent of Evonik's share capital -- are being placed with institutional investors at a price of 32.30 euros.

An additional "greenshoe" option of 1.398 million shares is being held in reserve in case of strong demand.

If all the shares are successfully placed, the placement will raise 346 million euros.

Deutsche Bank's announcement comes after the stock market regulator BaFin approved Evonik's stock listing prospectus on Monday, opening the door for the shares to be admitted to trading on the stock exchange from Thursday.

Evonik and its owners RAG have repeatedly postponed plans for an initial public offering (IPO) due to the very high level of uncertainty on the markets, arguing that the price attained would not have represented an appropriate valuation of the company.

The most recent postponement was in June 2012.

The group makes chemicals for the health and nutrition sectors, materials, coatings and additives and polymers, and has annual sales of 14.5 billion euros.

spm/wai

http://www.globalpost.com/dispatch/news/afp/130424/evonik-raise-nearly-350-mn-euros-share-placement