German tank gearbox maker Renk jumps 17% on market debut

Feb 7, 2024

Frankfurt: Share in Tank Gearbox Manufacturer rank The German company jumped 17% to open at 17.50 euros ($18.83). frankfurt market On Wednesday it was forced to postpone plans to go public, four months after poor market conditions.
The shares were issued at 15 euros per share in Germany's first initial public offering (IPO) Equity capital markets are showing signs of life this year after months of volatility, with many companies hoping to go public in Europe after the calm.
Renk, which supplies gearboxes for Germany's Leopard tanks used in conflicts such as the Ukraine war, on Tuesday extended its IPO by 50 million euros to sell about 500 million euros of shares in a private placement.
Shares worth 100 million euros went to German-French tank manufacturer KNDS (KMW+Nexter Defense Systems), one of Renk's largest customers. KNDS now holds a 6.7% stake and has the right to later increase this to a blocking minority of 25%.
Last October, Renk and its owner, private equity group Triton Partners, withdrew a planned IPO at the last minute, citing a “cloudy” market environment.
They restarted the issue on Monday but restricted it to professional investors to shorten the process.
Advisors to the IPO included investment banks Citigroup, Deutsche Bank, Goldman Sachs and JPMorgan.
Private equity group Triton bought Renk from Volkswagen Group in 2020 for about 700 million euros.
Optimism about IPOs has grown in recent weeks, with central banks signaling that interest rates may peak and volatility may drop to levels that dealmakers consider favorable for transactions.
Defense stocks including Germany's Hensoldt are rising after autumn declines, providing a better backdrop for Renk's listing.

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