Renk stops IPO - market environment deteriorates

Renk stops IPO - market environment deteriorates

According to a report by www.tagesschau.de, the gear manufacturer Renk was actually planning its IPO today. But just a few hours before the planned start, the company stopped its plan. The reason, according to a statement from the company: The market environment has noticeably deteriorated. Renk would have been the fourth newcomer to the stock exchange in Germany this year.

According to previous information, Renk wanted to offer up to 27 million shares and was targeting a price range of 15 to 18 euros. However, attempts to sell the shares were slow. The price per share was only at the lower end of the offer range.

Renk is an investment company that specializes in medium-sized companies. The company produces, among other things, gearboxes for vehicles and ships, but also for industrial plants and offers couplings, plain bearings and testing systems.

Canceling an IPO just a few hours beforehand is unusual. The last time this happened was in 2013, when private apartment landlord Deutsche Annington backed out because too few shares had been subscribed.

This cancellation is expected to have an impact on investor confidence and market sentiment. Since the price per share was only at the lower end of the offer range, this could indicate a lack of investor interest. The planned option of a later IPO shows that Renk may wait for a more favorable market environment in order to carry out the IPO at a later date at a better price.