* Stabilus shares rise 9 percent on debut
* Price range was 19-25 eur/shr, offer price 21.50 eur/shr
* More IPO activity expected in Germany in summer
* Stabilus could be included in SDAX in September
(Adds shares, details, background, comments)
FRANKFURT, May 23 Shares in German automotive
and industrial supplier Stabilus rose 9.2 percent on
their first day of trading in a sign investors are growing more
confident about investing in German market debuts.
The stock started trading at 22.75 euros on Friday, above
the offer price of 21.50 euros. It had risen as high as 23.48
euros by 1005 GMT.
While Britain has seen a surge in new issues in recent
months, with 31 companies raising $7.5 billion so far this year,
up 162 percent on last year, Germany had previously only seen
one initial public offering (IPOs).
3D printer maker SLM raised 180 million euros
($246 million) in its debut earlier this month.
More IPOs are expected in the coming months, with German
roofing company Braas Monier seen next in line.
Stabilus makes gas springs and hydraulic dampers which are
used to determine how fast a trunk lid opens or to individually
adjust the height of swivel chairs.
The IPO of Stabilus yielded roughly 260 million euros. The
company plans to use the 65 million euros it reaped from a
capital increase to pay down debt. Buyout group Triton, which
reduced its stake to 41 percent with the transaction, agreed not
to sell further shares within the next six months.
"Our goal is clear: we hope to move up to Germany's small
cap index SDAX soon," Chief Executive Dietmar Siemssen
said after ringing the bell when the first share price appeared
on screen at the Frankfurt Stock Exchange.
Index tracking experts expect Stabilus to take Air Berlin's
SDAX place in the September review.
"Stabilus' free float market cap will secure them a spot in
the middle of the field among SDAX companies and trading volumes
will likely also be sufficient," said Klaus Stabel from ICF
At the issue price, Stabilus had a market capitalisation of
445.6 million euros.
Stabilus, which has a 70 percent market share in automotive
gas springs, plans to keep an edge over competitors, which
include Brose and Edscha, by continuing to use 7.5 percent of
revenues for capital spending.
The company plans to pay out 20 to 40 percent of its profits
as dividends from its fiscal year 2014/2015 starting in October.
In 2013, Stabilus posted a net income of 25.8 million euros
and earnings before interest, tax, amortization and depreciation
of 75.9 million euros on sales of 460 million euros.
Triton took control of Stabilus in 2010 after the company -
burdened with debt by its private equity owner Paine & Partners
- breached its loan covenants. It injected fresh equity and
agreed to waive some of Stabilus' debt which it had acquired.
Commerzbank and J.P. Morgan organised the IPO with the help
of Societe Generale and UniCredit.
($1 = 0.7323 Euros)
(Reporting by Arno Schuetze and Alexander Hübner; Editing by