FRANKFURT, June 28 Shares in German forklift
truck maker Kion fell on their debut on the Frankfurt
stock exchange on Friday, boding ill for next week's proposed
initial public offer of real estate firm Deutsche Annington
The stock had been priced at the very bottom of the range of
24 euros ($31.21) to 30 euros, but many investors still sold
holdings in Kion swiftly, driving the stock down 1.3 percent
below the issue price as of 1454 GMT.
Kion is the world's second biggest maker of forklifts after
Japan's Toyota and had adjusted earnings before
interest and taxation last year of 438 million euros, up from
365 mln in 2011.
Its private equity owner KKR blamed the poor start
to recent market fears regarding a reduction in the Fed's
quantitative easing programme and a credit crunch among China's
Europe's major stock markets were all down by another
0.5-1.2 percent on Friday.
"We couldn't have picked a worse week this year," KKR's
German chief Johannes Huth said.
Kion, U.S. investment bank Goldman Sachs and
management together retain a 50 percent stake in the company,
with another 30 percent held by China's Weichei Power and the
remainder now floated.
So far there has been no signal that the order book has been
filled for next Wednesday's planned IPO of Deutsche Annington,
causing one banker not involved in the transaction to say: "It
will be tough if that (message to investors) doesn't come soon."
German IPOs are considered successful if there are two
orders for every one share issued.
Private equity company Terra Firma, the majority
owner of Deutsche Annington, has not signalled any willingness
to lower the 18-21 euro issue price range, however.