Reuters – Springer Science to Raise Nearly $1bn in IPO

German academic publisher Springer Science+Business Media is to raise about 760 million euros ($993 million) in a share offering, writes Reuters. The group said it planned to sell shares and list them on the Frankfurt stock exchange before the European summer break, and Goldman Sachs and JP Morgan were acting as joint global coordinators and joint bookrunners, writes Reuters.

Reuters – German academic publisher Springer Science+Business Media aims to raise about 760 million euros ($993 million) in a share offering, the second German company this week to announce flotation plans.

The group said it planned to sell shares and list them on the Frankfurt stock exchange before the European summer break, and Goldman Sachs and JP Morgan were acting as joint global coordinators and joint bookrunners.

It joins Kion Group, the world’s second-biggest forklift truck maker, which said on Monday it was preparing a stock market flotation in Frankfurt, as more German companies take advantage of a buoyant market.

Springer Science said the initial public offering would involve a 760-million-euro capital increase and that existing shareholders would grant underwriters a so-called greenshoe option to sell additional stock.

Springer Science competes with Anglo-Dutch publisher Reed Elsevier and Dutch Wolters Kluwer. It is owned by Swedish private equity firm EQT and the Government of Singapore Investment Corporation (GIC).

In 2012, Springer Science increased sales by almost 12 percent to 976.3 million euros, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 12 percent to 343.7 million euros.

Shares in Reed Elsevier and Wolters Kluwer trade respectively at an enterprise value of 9.6 and 7.3 times expected core earnings, according to data from Thomson Reuters Starmine. This would indicate a valuation of between 2.5-3.3 billion euros for Springer Science.

The company publishes 2,200 English-language journals and more than 8,000 new book titles every year across five main fields that also include science, business, and transport.

British private equity investors Candover and Cinven created Springer Science+Business Media in 2004 by merging Dutch group Kluwer Academic Publishers with German firm BertelsmannSpringer.

In 2009, EQT and GIC bought 82 percent and 18 percent of the company respectively from Candover and Cinven.