Schaeffler Frankfurt Stock Exchange IPO

Overview:

• Schaeffler undertook its IPO on the Frankfurt Stock Exchange, raising €938 million which it used to repay debt.
• The German car parts manufacturer sold 75 million non-voting shares (66 million new shares, the remainder from those owned by the Schaeffler family) at €12.50 per share. 
• The IPO means close to 11% of the business is trading, with the shares also listed on the Luxembourg Stock Exchange. 
• Schaeffler's owners had hoped to raise as much as €2.5 billion when taking the business public but were forced to revise their target when the Volkswagen emission scandal broke in the lead up to IPO.
• Proceeds from the IPO were used to reduce the company's debt (down to €4.89 billion following the IPO). 
• In 2009, heavily in debt following the take over of Continental, Schaeffler began a €12 billion debt restructuring and the transaction is a continuation of this process.    
• The Schaeffler family intends to sell around a further 15% in the business in 2016. 
• Deutsche Bank and Citigroup were global coordinators on the IPO; Bank of America Merrill Lynch and HSBC were bookrunners.

Ben Naylor - Regional Editor