Siemens Picks Deutsche Bank, Goldman Sachs, UBS for Osram IPO
The selection is “an important foundation for the success of the IPO,” Chief Financial Officer Joe Kaeser said in a statement. The banks were chosen from “a strong group,” and Munich-based Siemens will select more institutions to help with the offering scheduled for fall 2011 later.
Winning the mandate for Osram bolsters the standing of Deutsche Bank and Goldman Sachs in the lucrative market to arrange stock listings, after the two banks were announced yesterday as coordinators on Evonik Industries AG’s IPO this year, slated to be Germany’s biggest offering in a decade.
Goldman Sachs has underwritten global equity offerings worth $22.4 billion so far this year, making it the top investment bank in this market, data compiled by Bloomberg show. Frankfurt-based Deutsche Bank, which tops the ranking for international bond sales this year, is fourth, while UBS ranks ninth, according to the data.
Siemens said March 28 it planned to cede control of Osram as Chief Executive Officer Peter Loescher focuses the company around energy, industry, infrastructure and health care, shifting away from consumer-based products. Siemens has exited industries including phones and consumer electronics, and Loescher has taken the company deeper into areas such as renewable energy.
Siemens plans to maintain a minority stake in Osram, which it says will benefit from growth in the global lighting industry. Osram is a leader in energy-efficient light-emitting diodes, together with companies such as Cree Inc. in the U.S. and Japan’s Nichia Corp., Kaeser has said.
Osram is the world’s second-largest lighting company, behind Amsterdam-based Royal Philips Electronics NV. Siemens, which announced earnings on May 4, has started treating the subsidiary as a discontinued operation. Wolfgang Dehen, who previously ran the energy division, took over as head of Osram.
Osram, which will maintain its headquarter in Munich, has an enterprise value of 5 billion euros ($7.3 billion) to 7 billion euros, according to analyst estimates. The initial public offering stands to be among the biggest listings in Germany in the past decade, when the country’s average IPO had a value of about 120 million euros, according to data compiled by Bloomberg. Osram has about 40,000 employees globally.
Evonik, the German specialty chemicals company partly owned by buyout firm CVC Capital Partners Ltd., yesterday said it chose Deutsche Bank and Goldman Sachs to coordinate its IPO, which the company aims to undertake later this year.
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