- By Region
Evonik, the German chemicals maker partially owned by private equity firm CVC, has revived its €1bn flotation plan after a robust start to the year for equity markets and amid signs that Europe’s initial public offering deep-freeze is thawing.
Evonik shelved its IPO last autumn when the RAG Foundation, the company’s biggest shareholder, said that financial markets were “poisonous” for new listings.
Christian Wildmoser and Marc Strobel, partners at CVC, said on Monday that Evonik could now try to list by the end of June.
CVC plans to sell a share for every two shares the RAG Foundation sells, in a flotation that is expected to value the chemicals maker at more than €10bn.
The European Central Bank’s disbursement of more than €1,000bn of cheap loans to banks, an orderly restructuring of Greece’s debts and signs that US economic growth is strengthening have combined to improve sentiment sharply.
Germany’s Dax index has rallied almost 17 per cent this year, outstripping the broader Eurofirst 300 gauge’s 7.5 per cent gain. Stock market volatility, one of the biggest obstacles to drawn-out, arduous IPO processes, has abated.
Many companies were forced to cancel or delay flotations last year, including Spain’s national lottery company and Siemens’ Osram unit.
Last year saw a record $76bn worth of cancelled new listings, many of them European groups, but some are now eyeing public markets once more, bankers said.
Switzerland-based DKSH and Dutch cable operator Ziggo are expected to price IPOs for SFr900m ($981m) and €800m respectively next week.