Berlin The Augsburg tank transmission manufacturer Renk is aiming for 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. 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.
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.
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