Bloomberg News

Evonik Owners Agree to Proceed With Company Stock-Market Listing

March 23, 2012

Evonik Industries AG’s owners said they plan to push ahead with an initial public offering of the German chemical maker in the first half after markets recovered and the company’s performance improved.

The board of trustees at RAG Stiftung, which owns 74.99 percent of Evonik, decided at a meeting today to restart the sale process which had been put on ice last fall, according to a statement. A final decision on the IPO will be made in April, and a listing may happen in the first half, RAG Stiftung said.

The decision may mean that Evonik is the first to sell shares in Germany this year after the sovereign debt crisis led to the shelving of IPOs by Siemens AG (SIE)’s Osram lighting unit and Rheinmetall AG (RHM)’s car-parts division in 2011. Markets have largely recovered, with the country’s benchmark DAX index, which Evonik is a candidate to join, rising 18 percent this year.

“The focus of Evonik on specialty chemicals turned out to be a successful strategy in 2011,” RAG Stiftung said in the release. “This is the decisive step leading to a successful stock listing.”

The IPO this week of Dutch cable company Ziggo NV which raised about 804 million euros ($1.1 billion), was “multiple times oversubscribed” and sold shares at the top end of its range, it said. Evonik’s owners RAG Stiftung and CVC Capital Partners Ltd. had last year planned to raise 4 billion euros to 7 billion euros in the first tranche, a person familiar with the matter said in August.

The Essen-based maker of polymers, which has been valued at as much as 20 billion euros, posted sales of 14.5 billion euros and earnings before interest, tax, depreciation and amortization of 2.77 billion euros last year.

To contact the reporter on this story: Sheenagh Matthews in Frankfurt at

To contact the editor responsible for this story: Benedikt Kammel at

Best LBO Ever
blog comments powered by Disqus