German gearbox maker Renk Group postpones IPO

(Reuters) – German defence contractor Renk Group said on Wednesday it has decided to postpone its planned initial public offering (IPO), citing a “clouded” market environment.

The start of trading in Renk shares had been scheduled for Oct. 5. But the company, which supplies gearboxes for Germany’s Leopard battle tank, said in a statement it was considering the option of an IPO at a later date.

Renk last month had announced plans for a listing on the Frankfurt Stock Exchange which could see its private equity owner Triton sell part of its stake.

The company had said it would price its IPO at 15 to 18 euros per share, which would have given it a potential valuation of up to 1.8 billion euros ($1.89 billion).

In its IPO announcement, the Augsburg-based company had indicated it was well positioned to capitalise on “megatrends”, including a “higher need for security and the energy transition”.

But the IPO market has been slow to recover after rising interest rates and Russia’s invasion of Ukraine all but froze new listings last year.

($1 = 0.9519 euros)

(Reporting by Lavanya Ahire in Bengaluru; Editing by Shilpi Majumdar)