Schaeffler AG is sticking to plans for an initial public offering, shrugging off the market turbulence prompted by the Volkswagen AG diesel scandal.
Schaeffler will release the price range, timetable and other information on Monday “after a series of comprehensive meetings with investors over the past days,” the Herzogenaurach, Germany-based car-parts maker said Friday in a statement. Schaeffler had targeted Monday for the start of trading.
Volkswagen is Schaeffler’s biggest customer, and the component manufacturer faced questions from potential buyers about implications from the carmaker’s admission of installing software to cheat on diesel-emissions tests, people familiar with the matter said a week ago. Schaeffler told investors that its products aren’t involved in the scandal, the people said.
Schaeffler had planned an expedited two-week sale process, about half the time typical for a European IPO. Reuters, citing people familiar with the deal, reported Thursday that Schaeffler is considering scaling back the IPO because of questions about Volkswagen and may postpone the sale by as much as a couple of months.
The family-owned maker of car parts and industrial ball bearings outlined plans on Sept. 21 to sell as many as 166 million new and existing shares, amounting to a stake of about 25 percent, with the stock to be traded in Frankfurt. The company may raise as much as about 3 billion euros ($3.3 billion) in the IPO, people familiar with the matter said at the time.
The Volkswagen scandal contributed to a decision Thursday by plastics maker Covestro AG to lower the price range for its IPO this week, cutting the amount it plans to raise by 40 percent to 1.5 billion euros. Covestro’s products include polycarbonates for car parts.