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Evonik IPO delayed again as volatile markets play havoc with listings

11 Jun 2012

Private equity-backed chemicals maker Evonik could cancel its $1bn IPO for the second time as weak financial markets continue to cripple exits.

The RAG foundation, which owns 75 per cent of the German company, said the performance of financial markets since the start of June had added to uncertainty over whether Evonik’s value would be properly reflected by a listing.

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.

A $1bn listing would value the business at more than $10bn.

Evonik executive board chairman Klaus Engel said at the end of May, “Despite the challenging conditions on the financial markets, we are entering the intensive phase of preparations for the planned stock exchange listing with great confidence.”

CVC Capital Partners holds a 25 per cent stake in Evonik which it bought from RAG for €2.4bn in 2008, 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, including the $3bn Singapore listing of motor sport racing company Formula One.

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