Bayer’s Covestro scales back IPO in wake of VW scandal
Covestro, the polymers business of German pharmaceuticals giant Bayer, on Thursday delayed and scaled down its planned stock market flotation, originally slated for this week, due to the volatility triggered by the massive Volkswagen pollution- cheating scam.
“In light of the current deterioration and volatility in the capital market environment,” Bayer and Covestro had scaled back the amount of cash they had hoped to raise from the initial public offering (IPO), they said in a statement.
And the shares would be listed on the Frankfurt stock exchange from Oct. 6, instead of Oct. 2 as originally planned.
“Since the start of the bookbuilding phase on Sept. 21, 2015, the capital market situation has deteriorated significantly,” statement said.
“External factors such as uncertainty surrounding future economic growth in China or the (United States) Federal Reserve’s interest rate policy have contributed to increased market volatility,” it explained.
“In addition, the stock market has been impacted by the negative headlines from the automo-
the tive sector,” the statement added, referring to the pollution-cheating scam that has engulfed German auto giant Volkswagen and wiped billions of euros off its market capitalization.
Covestro, which describes itself as one of the world’s leading polymer manufacturers, intends to issue between 61.2 million and 69.8 million new shares by way of a capital increase.