Leverkusen, Germany -- Covestro, the former MaterialScience division of chemical giant Bayer, has set the issue price of its shares at €24 (£17.7) a share, €2.5 (£1.84) a share lower than its original bottom-end forecast.
The firm announced it would be listing 62.5 million shares on the Frankfurt Stock Exchange next Tuesday (6 October), raising €1.5bn (£1.1bn) before costs and valuing Covestro at €4.9bn (£3.6bn).
Bayer announced yesterday that it would donate an extra €1bn (£738m) to Covestro to maintain the debt on the new company’s balance sheet at launch at €4bn (£2.95bn), including pension liabilities.
The offer was adjusted downwards from an earlier pricing range “to reflect the current deterioration and volatility in the capital market environment”, Covestro said in a statement.
“This had worsened considerably since the start of the bookbuilding process on 21 September,” it added.
Covestro’s chief executive Patrick Thomas said the group was “very satisfied” with the take up of shares.
“It is an indication of confidence in our company and its long-term growth strategy. The IPO will enable us to deploy our strengths more quickly, effectively and flexibly so that we can continue expanding our competitive advantages.
“We intend to share our commercial success with our stockholders by way of dividend payments from the start.”