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Renk cancels spontaneous return to the stock market: That's the reason
According to a report from www.augsburger- Allgemeine.de, the Augsburg transmission specialist Renk has surprisingly canceled its planned IPO. The company announced that the market environment had “noticeably deteriorated” in recent days. The exact reasons were not given, but it is assumed that the difficult economy and the poor mood on the stock markets contributed to this. The price range for the IPO was between 15 and 18 euros per share, which would have led to an expected placement volume of 405 to 486 million euros. The IPO has been postponed indefinitely and Renk plans to consider making another attempt at a later date. …
Renk cancels spontaneous return to the stock market: That's the reason
According to a report by www.augsburger- Allgemeine.de Augsburg transmission specialist Renk surprisingly canceled its planned IPO. The company announced that the market environment had “noticeably deteriorated” in recent days. The exact reasons were not given, but it is assumed that the difficult economy and the poor mood on the stock markets contributed to this. The price range for the IPO was between 15 and 18 euros per share, which would have led to an expected placement volume of 405 to 486 million euros. The IPO has been postponed indefinitely and Renk plans to consider making another attempt at a later date.
From a financial expert's perspective, this short-term cancellation of the IPO is unusual, but not unheard of. Companies always reserve the right to make such decisions. It is assumed that Renk can achieve a higher issue price if the market environment improves. The cancellation of the IPO has a financial impact on Renk as the company is now unable to achieve the expected placement volume. There is also uncertainty as to what will happen next with Renk and when a new IPO will take place.
Renk is a specialist in drive and control technology and produces, among other things, transmissions for tanks and tracked vehicles. The company benefits from both the defense industry and the energy transition, with around 70 percent of sales coming from defense equipment. Renk expects sales of up to one billion euros for the current financial year. It remains to be seen how the short-term cancellation of the IPO will affect Renk's growth goals and investments.
The failed IPO also causes uncertainty among Renk's employees. The IG Metall union is calling for long-term investors who will support both the company's military and civilian business. In addition, a national anchor investor, such as the federal government or a federal representative, is seen as desirable in order to secure Renk's future.
Read the source article at www.augsburger- Allgemeine.de