FRANKFURT - Germany's SES 21 said it would float its shares on Germany's regulated market segment next month, the second firm to fly in the face of slumping equity markets with IPO plans in as many weeks.
The company, which offers advice on planning and installing solar energy plants, wants to expand its operations across Germany and is seeking to raise up to 5.85 million euros ($5.72 million), Chief Financial Officer Willy von Becker said. "The timing of the IPO is exactly right," he said, pointing out that renewable energy was just starting to replace traditional fossil fuels such as coal, gas and oil.
Germany aims to double the share of renewables - including solar, wind and biomass - in the national energy mix by 2010.
The listing of Weilheim-based SES 21, which employs nine people, is being lead managed by Gebhard & Schuster Wertpapierhandelsbank .
Investors can subscribe to shares in a bookbuilding range of 6.00-6.50 euros from June 25 to July 8. SES 21 will issue 900,000 new shares in the offering, giving it a freefloat of around 26 percent, and shares are set to start trading on July 11.
Becker said the firm, which recorded sales of 12.1 million euros ($11.84 million) in fiscal 2001, with earnings per share of 0.13 euros, would target ecologically oriented funds and retail investors.
Monday's announcement follows news last week that AIG International, a Frankfurt-based real estate investment company, was seeking to generate up to 500 million euros in an initial public offering, with shares fixed at a price of 29 euros.
TEPID DEMAND FOR NEW ISSUES
But traders said by Monday afternoon there was as yet no demand for SES 21 shares on the grey market.
"There's not much sign of life there," said a trader at a German-based brokerage.
The market for new issues remains tricky amid a continued market slump which has hammered investors' appetite for stocks. Even companies with substantial assets and a history of solid profits have been forced to scrap plans to raise equity in recent months as wary investors hold back.
In February, German financial services firm BHW Holding cancelled a one-billion-euro stock placement after a hefty discount to the fair value of 25 euros estimated by banks marketing the issue failed to lure investors.
This followed the pulling of a planned 50-million-euro Neuer Markt listing by Spanish-based sex firm Private Media amid tepid investor interest and a weak market environment.
Wind energy firm Repower , which broke an eight-month drought for new issues in Germany by listing its stock in March, is currently trading some 32 percent below its 41-euro issue price, while property group Uniprofi has almost halved in value since it listed the same month.:
