Evonik Industries AG, Europe’s biggest unlisted specialty chemical maker, will hold talks with investors this week to determine whether to attempt or cancel Germany’s biggest initial public offering in more than a decade.
While investors have shown a “very high interest” in the IPO planned for Frankfurt, “the development on the financial markets since the end of May is sparking growing uncertainty whether proceeds can be achieved that justify Evonik’s value,” RAG-Stiftung, the company’s majority owner, said in an e-mailed statement today.
If the success of the transaction can’t be guaranteed, then the IPO will be canceled, RAG said. “The investor talks in the coming days are to provide clarity to enable a short-term well- founded decision.”
Evonik has twice attempted to list its shares since 2007 before postponing the plan as market conditions deteriorated.
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