Deutsche Post puts off IPO of Postbank subsidiary
Deutsche Post said it would extend the subcription period for the initial public offering of a stake in its Postbank subsidiary by two days and cut the price for the shares in Germany’s largest retail bank.
The date for the shares to begin trading was pushed back to Wednesday, instead of Monday, with the subscription period ending Tuesday.
The company also said it was cutting the price range to €28-32 (US$33.60-38.40) and would offer only two-thirds the originally expected 49.9 percent stake. Instead, it would also sell a €1 billion (US$1.2 billion) three-year convertible bond that would be repayable in the remaining one-third of Postbank shares.
Deutsche Post CEO Klaus Zumwinkel appeared to acknowledge criticism that the initial offering price of €31.50 to €36.50 (US$37.80 to US$43.80) had been too high.
“We have accepted the signals from the market and have considered the corresponding buyer interests,” Zumwinkel said. The addition of the convertible bond would give Postbank “a broader investor circle,” he said.
In all, the company expects to get at least €2.6 billion (US$3.1 billion) from the transaction.
The restructuring took some of the shine off a deal many had hoped would mark a revival in Germany’s moribund market for new offerings. Last month, bicycle maker Mitteldeutsche Fahrradwerke AG became the first company of any size to hit the market since November 2002.
Deutsche Post’s retreat suggests that investors still are not willing to pay a premium for new issues. Last week, the French government floated a 35 percent stake in jet engine maker Snecma at €15.70 (US$18.4), just above the bottom of its asking price range.
With 11.5 million depositors, Postbank is Germany’s biggest retail bank.
Deutsche Post, which is majority owned by the German government, delivers mail in Germany and owns express delivery service DHL.
