Centerbridge and Arpwood reap €300m with Senvion IPO

The IPO gave Senvion a market cap of €1bn. The decision to list came after a change of mind: after making its flotation plans official and setting the price range at €20-23.50 at the beginning of March, the company cancelled its private placement on 16 March, claiming market volatility as the cause.

Several media sources reported a lack of demand as the most likely reason, since market volatility has improved since the start of the year. A bribery and tax fraud investigation against Senvion CEO Jürgen Geißinger, which was launched in mid-March regarding events from his time at car parts maker Schaeffler, also added to the roadblocks for the wind turbine maker.

A week after the cancellation, the company decided to go for the flotation after all, but with a lower price range, which was eventually set at €15.75. Senvion said demand by investors made it consider the flotation for a second time. While it aimed to float approximately 46% of the total number of shares in the company during the first attempt, that figure has now been reduced to 28.75%.

Deutsche Bank, JP Morgan and Citigroup were acting as joint global coordinators and joint bookrunners. Bank of America Merrill Lynch, Barclays, Berenberg and Morgan Stanley were joint bookrunners. Raiffeisen Bank International and Banco Santander were co-managers. Rothschild was mandated as financial adviser.

US-based private equity firm Centerbridge wholly acquired the German wind turbine maker from Indian parent Suzlon Group in January 2015. Mumbai-based Arpwood Capital bought a 21% stake for $112m in June 2015.

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• Topics
• Exits
• DACH
• Industrials
• Germany
• Flotation
• IPO