BERLIN, Sept 12 (Reuters) – Germany’s Renk, which makes gearboxes for tanks, said on Tuesday it planned an initial public offering (IPO) on the Frankfurt Stock Exchange this year to fund expansion of its international operations and gain access to new financing options.
It said the offering would comprise existing shares owned by Renk’s majority owner, private equity group Triton, which bought the company from carmaker Volkswagen (VOWG_p.DE) three years ago.
Renk – which supplies gearboxes to Germany’s Leopard main battle tank – did not say how many shares would be offered or how much of the company Triton would retain, saying only that the IPO would create a “meaningful free float”.
Sources previously said that Renk could be valued at around 2.5 billion euros ($2.7 billion) in a listing.
Renk’s announcement of its intention to float comes days after German medical glass producer Schott Pharma unveiled plans to list in Frankfurt, and reflects improved sentiment for new stocks generally.
IPO markets were slow to thaw after rising interest rates and Russia’s invasion of Ukraine all but froze new listings last year, but an early wave of IPOs in Europe and the United States – before investors closed up shop for the summer – and greater visibility on interest rates has given bankers optimism that a recovery may be in sight.
In its IPO announcement, Augsburg-based Renk said it is well positioned to capitalise on “megatrends” including a “higher need for security and the energy transition”. It expects to grow at compound annual rate of 10% over the next four years.
Renk controls more than 30% of the market for transmissions for military vehicles globally, according to its announcement. Defence makes up the bulk of its revenue but the group also provides products for civil use.
($1 = 0.9314 euros)
Reporting by Maria Sheahan in Berlin and Pablo Mayo Cerqueiro in London; Editing by Friederike Heine and David Holmes
