First day of trading on the stock exchange for the tank gear manufacturer Renk: a total of 30 million shares are to be sold. And an industry giant is joining the Augsburg team.
The Augsburg arms company Renk is making up for its IPO that was postponed in the fall. The company and the Deutsche Börse announced that the shares of the tank gear manufacturer will be traded on the regulated market of the Frankfurt Stock Exchange for the first time on Wednesday.
Renk wants to list a total of 30 million shares, which correspond to 30 percent of the company’s shares, at a price of 15 euros each. The financial investor Triton initially wants to keep the remaining 70 percent of the former Volkswagen subsidiary. The IPO is expected to raise a total of 450 million euros. In October, Renk canceled the IPO at short notice due to unfavorable market conditions.
Armaments company KNDS becomes a major shareholder
Through the IPO, a second major shareholder will join Renk. According to Renks, the arms company KNDS wants to acquire shares worth 100 million euros. Triton and KNDS have agreed that KNDS can later acquire additional shares from the majority shareholder, so that KNDS’s shareholding can increase to up to 25 percent plus one vote. KNDS is backed by the German military vehicle manufacturer Krauss-Maffei Wegmann (KMW) and the French defense company Nexter, which merged in 2015.
As a further Renk anchor investor, the asset management company Wellington Management Company LLP is also set to receive shares worth 50 million euros. According to Renk, it has more than 3,400 employees and plants in several countries. The company experienced a boom due to the armaments boom following the war in Ukraine. Renk had achieved sales of around 850 million euros in 2022 and, according to previous information, wanted to increase this to up to one billion euros in 2023. Renk has not yet presented the figures for last year.
Source: Stern
