Covestro €1.5 billion Frankfurt Stock Exchange IPO

Overview:

• Bayer’s plastics division Covestro raised €1.5 billion through its IPO on the Frankfurt Stock Exchange after its German parent company spun off the unit.
• The German chemical and pharmaceutical group sold 31% - 62.5 million shares – of Covestro’s stock at €24 per share.
• The Leverkusen based group had hoped to raise as much as € 2.5 billion through the IPO but revised its initial share price range down after lower than expected investor demand amid domestic and international market instability.
• Bayer decided to separate its polymer and specialty chemicals unit, Bayer Material Science, so it could focus future investments on its core businesses.

Ben Naylor - Regional editor