Hess AG announced last month plans for an initial public offering (IPO) of shares in the Prime Standard of the Frankfurt Stock Exchanges, and now has extended the subscription period and reduced the share price. Still, the company hopes to raise EUR 35.7-42.6 million ($46.9-$56 million).
The new price range for the shares is from EUR 15.50 to EUR 18.50 ($20.35 to $24.28) and is about a 22% reduction from the previously announced pricing. Moreover, the time period for the subscription has been extended to October 23 at 12 noon central European time. Previously the period was to have ended today, October 17.
Hess' goal remains unchanged – raising capital to expand its participation in the high-growth LED lighting market sector. The company also said that it would develop OLED technology, and establish a line of residential lighting products.
"As an LED pioneer, we have a strong international sales network with established brands. We have grown our revenues by an average of 14 % per year between 2009 and 2011, and we have grown ever more profitable over the same period," said Christoph Hess, CEO of Hess AG when share pricing was initially announced. "At the same time, we identify considerable growth potential in our core markets of Europe, Asia, the Middle East and North America. Demand for energy-efficient lighting is becoming increasingly stronger on all of these markets. The planned IPO plays a decisive role in helping us to participate in this LED revolution."
