UPDATE 2-Manz Automation raises 112 mln euros new capital

Wed Jul 2, 2008 7:34pm IST

Stocks

   

(Adds comment from bank)

ZURICH, July 2 (Reuters) - Manz Automation (M5ZG.DE) raised 112 million euros ($176.8 million) in its second capital increase since it went public in 2006, attracting strong demand from investors in Germany and Switzerland.

The German company, a maker of automation systems for solar production equipment, sold 896,011 new shares for 125 euros each, the joint-lead manager of the transaction, Commerzbank (CBKG.DE), said in a statement on Wednesday.

The take-up rate of the one-for-four rights offer was 99.2 percent. The book of rights not taken up by existing share holders was three-times oversubscribed, Commerzbank said.

"The sector is en vogue," said Oliver Bruch, head of equity syndicate at Commerzbank.

Consistently high returns of renewable energy companies were attractive for investors at a time when global equity markets battled the effects of a credit crisis stemming from problems in the U.S. mortgage market.

"Overall equity issuance, such as initial public offerings and secondary offerings are still difficult," said Bruch.

The strongest demand came from German speaking countries, mainly Swiss and German accounts, the bank said, mainly from social responsibility investments and long-only funds.

Manz shares, which are now trading in Deutsche Boerse's (DB1Gn.DE) prime standard segment from where they can move into one of the German indexes, were trading lower, down 1.2 percent at 156.50 euros by 1337 GMT. (Reporting by Eva Kuehnen; Editing by Will Waterman and Erica Billingham)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage