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Schaeffler Cuts IPO by 55%
Schaeffler AG, which announced plans less than three weeks ago to sell 166 million non-voting shares in an initial public offering later this year, now intends to offer only 75 million shares.
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Schaeffler AG, which announced plans less than three weeks ago to sell 166 million non-voting shares in an initial public offering later this year, now intends to offer only 75 million shares.
The German bearing supplier is scaling back the IPO because of an expected negative impact on engine production caused by Volkswagen AG's diesel engine emission cheating scandal.
Schaeffler had hoped to raise €2.5 billion or more with the IPO. Now, with an expected per-share price of €12-€14, the company is likely to gain €975 million. The funds will be used to pay down debt incurred in 2008 from a poorly timed takeover bid for Continental AG.
Schaeffler started 2015 with about €5.8 billion in debt. The company's revenue in the first half of the year grew 5% to €6.7 billion.
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