The armaments business with gearboxes for tanks or ships for the navy accounts for 70 percent.
(Photo: Renk)
Frankfurt The Augsburg tank gear manufacturer Renk wants to go public this year. The company announced this on Tuesday. According to financial circles, the debut on the Frankfurt Stock Exchange is likely to take place in the first week of October.
Renk boss Susanne Wiegand said the IPO was the next logical step on the growth path. The financial investor Triton, which took over Renk three years ago, wants to sell its existing shares but remain the majority owner of Renk even after the IPO. A “relevant” free float is being targeted.
According to financial circles, the placement of at least a quarter of the shares is expected. Renk could be valued at 2.5 to three billion euros. The company declined to comment.
The supplier is currently experiencing a boom.
(Photo: Renk)
For Renk, it is the second IPO in exactly 100 years: the company was listed on the stock market from 1923 to 2020 before it was taken over by Triton. In Germany, Renk is only the fourth major IPO of the year. The industrial group Thyssen-Krupp took its hydrogen subsidiary Nucera public in July. The issue raised a good 600 million euros.
However, investment bankers expect a number of further deals to follow as investors’ buying mood returns. Last week, pharmaceutical packaging manufacturer Schott Pharma announced its stock market debut. The Douglas perfumery chain is also planning a possible return to the stock market.
VW sold Renk for 700 million euros
Renk is currently experiencing a boom. The defense business with gearboxes for tanks or ships for the navy accounts for 70 percent, while the rest is made up of civilian business, for example with gearboxes for compressors. The former MAN subsidiary, the world market leader in tank transmissions, was sold to Triton by Volkswagen for 700 million euros three years ago. Bankers had recently estimated the possible valuation at 2.5 billion euros.
“The planned IPO will give us access to additional financing instruments and support the Renk Group’s strategy of achieving high and sustainable growth over several decades,” said CFO Christian Schulz on Tuesday.
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In the first half of the year, the company increased sales by almost eight percent to 410 million euros, and adjusted operating profit climbed by 5.5 percent, according to the company. In 2022, Renk earned 144.3 million euros with sales of 849 million euros.
Revenues of 900 million to one billion euros are expected for the current year, and the profit margin is likely to be 16 to 17 percent. In the medium term, sales should increase by ten percent annually and the profit margin should increase to 19 to 20 percent.
With agency material
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