Munich, Germany-based Wacker Construction Equipment AG began marketing its shares last week, offering up to 18.4 million shares based on a secondary placement combined with a capital increase. The company intends to use the IPO proceeds to consolidate its market position and pursue its international growth strategy.
The offering period in which investors can subscribe for shares is expected to run from May 9 to May 14. The price range has yet to be published. Initial listing is planned for May 15.
Under the umbrella of the German public offering and international private placements, up to 7.5 million shares will be placed through a capital increase and 8.5 million shares will be placed from the portfolio of Wacker Beteiligungs GmbH & Co. Following share placement, the free float will total around 36 percent.
The company plans to invest the IPO proceeds to secure profitable long-term growth and will focus on expanding the rental business and building up the compact equipment segment. The company intends to expand its service partner network through its Equipro franchise concept in the United States, and also plans to construction a new research and development center in Munich.
The IPO securities prospectus was approved by the German Financial Supervisory Authority and published on the Wacker Construction Equipment AG website at www.wackergroup.com April 30.
Wacker increased sales 23.1 percent in fiscal 2006 and improved profitability. Its EBITDA grew 42.7 percent to EUR 100.2 million, up from 70.3 million in fiscal 2005.
Wacker is planning to merge with Neuson Kramer Baumaschinen AG in 2007, eventually trading as Wacker Neuson.