Homag is due to announce today when its decision to list on the Frankfurt Stock Exchange will be made.
While the company has set a deadline of the end of 2007, according to sources, it’s likely to be earlier than that.
“We want to be more independent from the banks and have better liquidity,” said Simone Müller, from Homag’s investor relations team. “The company is in a strong position and the market is interested in our shares, so now would be a good time to go public.”
It’s a decision that’s been a long time coming. According to Ms Müller, the company’s founder revealed his plans to list the company as long as 20 years ago.
Homag showed “substantial” growth in 2006, with sales up 20% to €736.5, from €613.5m in the previous year. Earnings before interest, taxes, depreciation and amortisation climbed 56% to €85m.
“We believe the decision to go public will help the company grow,” said Ms Müller, adding that it was targeting US dollar markets because of the relative strength of the euro against it.
“But,” she said, “there will be no effect on the UK market.” The company was due to post its decision on its website today.
