Deutsche Bank and Mainfirst, two major investment banks are in the process of placing up to 2% of the shares in Evonik, the Germany based chemical company. The price per share, according to Reuters, is at US$32.20.
The banks would be placing the Evonik shares with institutional investors before a planned initial public offer would be made on Thursday. Evonik's two owners, RAG trust, who holds the liabilities of the shut down German coal mines and CVC Capital Partners, the buyout firm.
The placements prior to the IPO was in response to increased demand for the shares as two pre-flotation private placements were easily snapped up by investors. The private placements were done at the behest of the two owners in response to perceived demand for the chemical company's shares in the market.
In related news, CVC, as minority shareholder, placed nearly 12% of its shareholdings with other investors such as Temasek, the sovereign wealth fund of Singapore.
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