Gerresheimer book closed

The Blackstone backed German specialist glass and plastics firm Gerresheimer has priced its €880m IPO at €40 from a €37–€45 range. The book closed last week shortly after the leads had advised accounts that orders below €40 were likely to miss out. The guidance on pricing was welcomed as even syndicate banks had heard little information.

The success of the deal was also important as this is the first US$1bn-plus IPO in Western Europe, excluding real estate, since Prysmian at the end of April, and the second of the year in Germany. The previous deal was Versatel which is still down over 20% from issue.

The deal raised €456m for the company and €424m for seller Blackstone. The leads have a 3.3m secondary share greenshoe that could take proceeds over €1bn and the freefloat to 80%. Allocation was weighted towards top quality accounts. This included domestic and global accounts as well as healthcare specialists, while the book included very few hedge funds. One banker said the pattern was similar to this time last year when all the hot money disappeared from issues leaving long-only names. Credit Suisse and Morgan Stanley were joint books.