Since Wednesday, March 23, 2016, Senvion is officially listed in the Prime Standard on the Frankfurt Stock Exchange. Exactly one week earlier, Senvion called off the private placement right at the last minute only to announce the recommencement of its stock exchange plans on the following Monday – albeit with a number of modified conditions. This still works out at a market capitalization of over EUR 1 billion.
In recent years, capital markets have been characterized by volatility and these external factors cannot be controlled. Modifying the conditions, therefore, is not all that unusual – as other initial public offerings in the past have shown. With the last-minute withdrawal of the IPO, the owners of Senvion were following the trend – writes Antonia Kögler for Finance Magazin on April 7: "By the end of March, 17 initial public offerings had been withdrawn this year already. That corresponds to around 10% of all initial public offerings in the first quarter, in which the prices were set. Never before have, proportionally, so many initial public offerings been canceled as this year. With 12 deals, the large majority of these concerned IPOs from the USA."
CFO Manav Sharma explains the supposed to-ing and fro-ing: "As a leading, global mechanical engineering company in the wind energy industry, our company is a worthwhile investment – this was also illustrated by the increase in investor inquiries after we initially canceled the IPO. This is why our owners and the Executive Board of Senvion quickly decided to recommence the private placement with some changes made to the conditions. They are handing over only a comparatively small portion to begin with and hope that the IPO will make Senvion's financial strength more transparent. Modified conditions are one thing – what is crucial is that the public offering was ultimately a success for us." Especially as the modified conditions would have no influence on these objectives. Since the IPO was announced on February 22, CEO Dr. Jürgen Geissinger has repeatedly emphasized how important it is to be listed on the stock exchange: "Gaining access to the capital markets will strengthen our global profile, help us succeed in new markets and support our growth trajectory. As an independent company, we will continue to invest in innovations, further develop customer relationships and expand into new markets."
Initial Public Offering Info Box
With the former price range (EUR 20.00 to EUR 23.50 per share) of March 7, a market capitalization of approximately EUR 1.3 billion to EUR 1.53 billion could have been achieved. While the issue volume of up to 46% had been allotted for the first price range, this was reduced to 28.75% for the second attempt and the price range was set at EUR 15.50 to EUR 17.00 per share. This still works out at a market capitalization of over EUR 1 billion. Together, the current owners – Centerbridge and Arpwood – have a stake of about 71.25% in the share capital of the company. The successful private placement means that about 28.75% of Senvion's share capital is in free float.