April 18, 2011
Evonik to prepare company for IPO
Evonik Industries AG's majority owner RAG Foundation said it aims to prepare an initial public offering (IPO) for the German specialty chemicals company within the next 15 months.
Evonik produces and sells four essential amino acids used in advanced animal nutrition.
"In autumn, it will be decided if an IPO is possible within the current year," RAG Foundation said. However, such a move will depend on political and economic risks and could be halted at any time. It is also dependent on raw material prices, severe currency fluctuations and the effects of the natural and atomic catastrophe in Japan.
RAG Foundation said in early March that it would decide on an IPO for Evonik in mid-April.
Evonik was previously part of coal mining company RAG AG, but was renamed Evonik in 2007. It operates in the chemicals, energy and real-estate industries.
Evonik terminated plans to go public in 2008 amid deteriorating market conditions in the face of the financial crisis. In mid-2008, RAG Foundation sold a 25.01% stake in the firm to UK private equity company CVC Capital Partners Ltd. for EUR2.4 billion (US$3.45 billion), since when it has held 74.99%.