- Company cuts 23% from proposed share price to 15.50 euros
- Funds sought now less than half the value of planned IPO
Senvion GmbH plans to raise as much as 318 million euros ($358 million) in a private placement of shares, less than half the sum that the wind turbine maker had planned to reap before it abandoned an initial public offering earlier in the month.
The company based in Hamburg said it will sell the shares for 15.50 euros to 17 euros ($17.44 to $19.13) apiece, 23 percent below the price sought in the IPO that it shelved due to market volatility. It plans to place 16.25 million shares with investors and an over-allotment of almost 2.4 million shares.
“Against the background of numerous investor inquiries, Senvion and its shareholders Centerbridge and Arpwood have decided to relaunch a private placement and listing of shares on revised terms,” the company said in a statement on Monday.
The sale would scale back ambitions to raise capital Senvion needs to compete as larger rivals such as Siemens AG and Nordex SE make acquisitions to expand their market clout. Siemens is buying the Spanish turbine maker Gamesa Corp. Tecnologica SA, and Nordex has bid for manufacturing assets of Acciona SA.
Senvion’s U.S.-based owners said on March 7 that they would sell 29.9 million shares in a private placement, including an over-allotment of 3.9 million shares at a price of 20 to 23.50 euros. They were seeking to raise as much as 703 million euros in the IPO, which would have made it the largest in Europe this year.
“Assuming full exercise of the greenshoe option, the free float following the private placement is expected to amount to approximately 28.75 percent of Senvion’s issued and outstanding share capital,” the company said in a statement.
Senvion cited market volatility as the reason that it did not pursue the IPO. Investors are shying away from European equities in a time of uncertainty and sluggish growth in the trade bloc.
The company expects pricing of the placement on March 22 and trading to begin the following day.