By Emma-Victoria Farr
FRANKFURT (Reuters) - German tank gear manufacturer Renk said on Tuesday it is increasing its IPO by 50 million euros to sell around 500 million euros ($537.30 million) shares in its private placement.
Its owner, private equity group Triton Partners, placed 33.33 million Renk shares with institutional investors within two days, 3.33 million more than planned, the company said.
Shares worth 100 million euros went to the German-French tank manufacturer KNDS (KMW+Nexter Defense Systems), one of Renk's largest customers. KNDS now holds 6.7% and has been granted the right to later increase it to a blocking minority of 25%. Around 27% of shares will be in free float. Augsburg-based Renk will have a market value of 1.5 billion euros at the start of trading in Frankfurt on Wednesday in its second attempt at going public.
Last October, Renk and Triton put plans on hold on the eve of a planned initial listing due to a lack of demand. They resumed the issue on Monday, but limited it to professional investors in order to shorten the process.
Advisers on the IPO include investment banks Citigroup, Deutsche Bank (ETR:DBKGn), Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM).
In Germany, Renk is the first newcomer to the stock exchange this year. Triton bought Renk from the Volkswagen (ETR:VOWG_p) Group in 2020 for almost 700 million euros.
($1 = 0.9306 euros)