German engine manufacturer MTU Aero Engines is to list nearly two-thirds of its shares on the Frankfurt stock exchange in an initial public offering (IPO) that will take place on 6 June.
Private equity investor Kohlberg Kravis Roberts (KKR), which owns MTU, will sell around 16 million of its shares in the company, while MTU will issue 15 million new shares. KKR has the right to sell a further 4.65 million shares. They will be priced between €19 ($24) and €22, and based on the mid-point of those prices, MTU says the offering will raise €731 million. MTU will use proceeds from the capital increase – around €307 million – "primarily to reduce its acquisition-related indebtedness".
Source: Flight International