The armaments business with gearboxes for tanks or ships for the navy accounts for 70 percent.
(Photo: Renk)
Berlin The Augsburg tank gear manufacturer Renk is aiming to return to the stock market. The company announced on Tuesday that the aim is to go public by the end of 2023, depending on market conditions.
It usually takes around four weeks between the official announcement of an IPO, the so-called Intention To Float (ITF), and the first day of trading. An IPO could therefore take place by mid-October.
Renk boss Susanne Wiegand said this was the next logical step on the growth path. A public offering in Germany and private placements with institutional investors in other countries are planned. 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.
Citigroup, Deutsche Bank and JP Morgan are leading the IPO. For Renk, it is the second IPO in exactly 100 years: the company was on the stock market from 1923 to 2020 before it was taken over by Triton.
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 by Volkswagen to the financial investor Triton three years ago for 700 million euros. Bankers had recently estimated the possible valuation at 2.5 billion euros.
In the first half of the year, Renk increased sales by 7.9 percent to 410 million euros, and adjusted operating profit climbed by 5.5 percent. In 2022, the company 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 are expected to increase by ten percent and the profit margin to rise to 19 to 20 percent.
The supplier is currently experiencing a boom.
(Photo: Renk)
IPOs haven’t really taken off for a while. So far this year, Nucera has stood out in Germany. The industrial group Thyssenkrupp took its hydrogen subsidiary public in July. The issue raised a good 600 million euros.
According to insiders, the Douglas perfumery chain is planning a possible return to the stock market. The pharmaceutical supplier Schott is also aiming for a stock market debut this year.
More: How the Augsburg tank gear manufacturer Renk is growing with armaments again