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CVC-backed Evonik shelves $1bn IPO

18 Jun 2012

Evonik Industries, the German chemicals producer backed by London-based buyout firm CVC, has shelved plans to float on the Frankfurt stock exchange in favour of resuming efforts to list once markets recover.

“Many big investors indicated their willingness to invest in Evonik in talks last week, but due to the high level of uncertainty in the markets, especially over the further development of the euro zone, the price that could be reached is far from a sufficient valuation of Evonik,” majority shareholder RAG Foundation said in a statement.

Evonik was due to list on the Frankfurt bourse for a similar amount in the third quarter of 2011 but the IPO was canned amid choppy market conditions.

Shares in the company were due to be listed in the Prime Standard segment of the Frankfurt stock exchange.

The planned $1bn listing would have valued the business at more than $10bn.

Deutsche Bank and Goldman Sachs Group are acting as joint global coordinators and joint book runners for the IPO. Bank of America Merrill Lynch, Credit Suisse and JPMorgan are acting as additional joint book runners.

CVC holds a 25 per cent stake in Evonik alongside RAG-Stiftung, which own the remaining stake. The firm bought the interest from RAG in 2008 for €2.4bn, beating rival bids from Blackstone, KKR and Bain Capital.

Planned flotations around the globe have been delayed in recent weeks due to volatility in the financial markets. These include the $3bn Singapore listing of motor sport racing company Formula One.

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