Nordic buyout firm EQT Partners has raised nearly €2.1 billion ($2.85 billion) by floating Tognum, a German engineering group, just sixteen months after buying the business. It will be the largest IPO in Germany since Deutsche Post went public in 2000.
The buyout firm sold 75 million shares at €24 each, the midpoint of the €22-€26 range. It has also reserved 11.25 million shares as a greenshoe option. If all shares are issued, this would raise €2.07 billion.
EQT owned around 84.1 percent of the shares before the offering and if the greenshoe is fully exercised, EQT will retain around 19.9 percent of the shares.
Tognum’s main business is high-speed diesel engines and propulsion systems for ships, trains, agriculture, industry and power generators. It also produces other types of engines.
The offering comprised 11.35 million shares from a capital increase by Tognum and a further 63.65 million shares owned by EQT.
Tognum will receive approximately €268 million in gross proceeds. This will allow the company to cut debt and EQT to realize gains, according to newswire Bloomberg.
EQT bought the company in March 2006 from automotive company DaimlerChrysler for €1.6 billion, renaming it last July. The company was formerly called MTU Friedrichshafen when it was bought with parts of the Detroit Diesel Corporation subsidiary from the motoring company.
Tognum shares were €0.03 down at €23.97 at 12.15 pm BST.