update 1-battery maker varta jumps on frankfurt stock market debut - home energy storage
(
Add details, background)
Frankfurt, October 19 (Reuters)-
German battery maker Varta's shares rose sharply in Frankfurt as investors hoped to benefit from the expected surge in demand for the company's products, including household energy storage systems.
Stocks start trading at 24.
25 euros, 39% higher than the issue price 1750 euros.
By 0800 GMT, their trade grew by 10%.
Varta focuses on small batteries for headphones and wearable consumer electronics, as well as large energy storage systems for solar panels for home and commercial buildings to generate electricity.
Varta predicts that as the population ages and the demand for hearing aids increases, there will be rapid growth in the coming years.
In terms of energy storage, demand for large batteries has increased as Germany gradually removes subsidies for renewable energy sales.
The company plans to use most of its 0. 15 billion euros in proceeds from its initial public offering to fund capacity expansion mainly in Germany.
The IPO valued the company at 0. 669 billion euros, which is still majority owned by Austrian investor Montana technology.
If the excess option is fully exercised, 35% of the shares will float freely.
Varta canceled its previous IPO plan in last November on the grounds of unfavorable market conditions.
Valta, previously owned by the German historical Industries Group valta, was divided into three smaller units at the beginning of the century.
In 2002, Johnson Control took over the automotive battery business, and the home battery division merged with the United States. S.
Rayovac, now known as the Spectrum brand.
In 2007, Montana technology acquired the micro-battery business.
Berenberg and Unicredit provided suggestions on the IPO.