Evonik cancels IPO

The Company, which is 25% owned by CVC and at 75% by the German RAG Foundation, was due to float early this summer but withdrew its pending offer yesterday. Board members cited a "high level of uncertainty" in the markets for the decision.

This is the second time Evonik has canceled a planned IPO, having shelved the option last year already. The company would have entered Frankfurt's benchmark DAX index and shareholders had hoped to achieve a market cap of between €10-15bn, according to reports.

The flotation was intended to secure income to cover the liabilities associated with the ending of subsidised coal mining in Germany in 2018. Evonik had revenues of €14.5bn last year, generating an EBITDA of €2.8bn.

A spokesperson for the RAG Foundation said in a statement: "Evonik remains in excellent shape. However, its IPO can be considered only upon a significant improvement of the situation in the financial markets."

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• Topics
• DACH
• Exits
• Germany
• CVC Capital Partners
• Flotation