13.06.2006

Demag Cranes IPO

Demag Cranes is in the final stages of an initial public offering that should lead to a Frankfurt stock exchange listing, possible as soon as June 20.

Demag Cranes AG owners Kohlberg Kravis Roberts & Co. and Siemens AG plan to raise as much as €500 million selling shares to take advantage of container shipping growth.

As many as 14.95 million shares will be sold for up to €31 each, including an additional 1.95 million in case of extra demand.

Siemens, based in Munich, and New York buyout firm KKR are selling as much as 70.6 percent of Demag Cranes to benefit from surging global trade, which has spurred orders from mining companies, metal producers, ports and manufacturers.

Shares of Demag rival KCI Konecranes Oyj of Finland have almost doubled in value in the past 12 months.

The IPO comes as stock indexes have dropped on concern economic growth will slow as central banks around the world raise interest rates to combat inflation.

If the listing is successful, it will be one of the biggest in a series of German flotations so far this year.