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STS Group Expects To Price IPO To Be Between EUR 26 And EUR 32/shr

The STS Group AG, global system supplier to the commercial vehicle industry for soft and hard trim components, said that it has established the price range for its planned Initial public Offering on the regulated market (Prime Standard) of the Frankfurt Stock Exchange. The price range for the shares to be offered will be between 26 euros and 32 euros per share.

The final offer price and placement volume will be determined by way of a bookbuilding process. The final offer price is expected to be set on May 29, 2018. The offer includes 1 million shares from a capital increase, up to 1 million shares from the holdings of the previous sole shareholder Mutares AG, and a greenshoe consisting of 300,000 shares, also from the shareholdings of the previous sole shareholder.

Assuming full placement of all the shares offered (including exercise of the
greenshoe option), the placement volume is expected to be between 59.8
million euros and 73.6 million euros. Of this amount, the company would receive
between 29 million euros as gross issue proceeds in the middle of the bookbuilding spread. Free float of around 38% of the share capital is expected if the greenshoe option is exercised in full. Mutares AG will remain the majority shareholder even after the IPO. A 12-month lock-up period from the day of the first listing applies to both STS Group AG and Mutares AG.

The subscription period for institutional investors will begin on May 15, 2018 and is expected to end on May 29, 2018 at 2 pm. The period in which private investors can submit purchase offers via the subscription functionality of the Frankfurt Stock Exchange will begin on May 16, 2018 and end on May 29 at 12 noon. The start of trading on the regulated market (Prime Standard) of the Frankfurt Securities Exchange is planned for June 1, 2018.

With its IPO, the STS Group is planning the continued strategic expansion of
its market position in the global automotive market. The expected net proceeds for the company of between 26 million euros and 32 million euros are to serve primarily as financing for its further expansion into China and North America. In addition, further investments should be made in the increasing expansion of its production to Eastern Europe. Plans to use the capital raised in connection with the IPO also include expanding automatization and focusing on technological trends such as autonomous driving and e-mobility.

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