As of: February 7, 2024, 2:19 p.m
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An employee assembles the transmission for a tank at the Renk company.
© Stefan Puchner/dpa
First day of trading on the stock exchange for the tank gear manufacturer Renk: a total of around 33 million shares were offered.
An industry giant took advantage of the IPO to join the Augsburg company.
Frankfurt/Main - The Augsburg arms company Renk went public on Wednesday after a four-month delay.
The first price for the shares of the tank gear manufacturer was 17.50 euros, as reported by Deutsche Börse.
Renk shares later rose significantly above the 18 euro mark.
Renk originally wanted to go public last fall.
But in October the company canceled the IPO at short notice due to unfavorable market conditions.
Renk had offered a total of around 33.3 million shares, which correspond to a third of the company's shares, at a price of 15 euros each.
The financial investor Triton initially wants to keep the remaining shares in the former Volkswagen subsidiary.
The IPO would generate around 500 million euros, Renk reported after the IPO.
With the IPO, a second major shareholder joined Renk.
According to Renks, the arms company KNDS has acquired shares worth 100 million euros.
Triton and KNDS have agreed that KNDS can later acquire additional shares from the majority shareholder, so that KNDS's shareholding can increase to up to 25 percent plus one vote.
KNDS is backed by the German military vehicle manufacturer Krauss-Maffei Wegmann (KMW) and the French defense company Nexter, which merged in 2015.
KNDS produces, among other things, the Leopard 2 main battle tank, for which Renk builds the transmission.
As another Renk anchor investor, the asset management company Wellington Management Company LLP also received shares worth 50 million euros.
According to Renk, it has more than 3,400 employees and plants in several countries.
The company experienced a boom due to the armaments boom following the war in Ukraine.
Renk had achieved sales of around 850 million euros in 2022 and, according to previous information, wanted to increase this to up to one billion euros in 2023.
Renk has not yet presented the figures for last year.
dpa