"There is a natural reticence to participate in IPOs," said one banker close to the deal. "Instead of having a last minute panic, the company has said: 'This is the range and it more than compensates for market volatility'."
Danish-listed NEG Micon and Vestas are the closest comparables to Nordex, according to one fund manager in Frankfurt, who said he was using p/e multiples for 2001 to assess the IPO. On this basis, the top of the range offers a negligible discount to NEG Micon, but the bottom works out at 22%.
The figures for 2002 show bigger discounts, of between 10% and 30%. On EV/Ebit 2002 multiples, the new range offers a discount of between 27% and 41%. "This is the most relevant figure," said the banker.
He pointed to a placing of Dkr610m (Eu80m) in NEG Micon stock last Friday as a sign that there is still plenty of interest in the sector. Vestas could also help if it comes out with positive news when it announces its figures for 2000 this week. "This will ride her home," said the banker. "At these levels, we have had lots of indications that it will be nicely covered."
The deal would also benefit from a recovery on the Neuer Markt. At midday today, the Nemax 50 index had risen almost 5%.
Dresdner Kleinwort Wasserstein is sole bookrunner for the issue and joint lead manager with WestLB.